Our Vision for 2018 & Beyond - Strategic Group Annual Review 2017
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Our Vision for 2018 & Beyond Strategic Group Annual Review 2017
Strategic Group 1 Annual Review 2017
Strategic Group Our company is fully integrated, which means we own, manage,
OUR MANTRA:
Creating
lease, develop, re-develop, and re-purpose our portfolio on
owns, manages, our own, for ourselves. We have national reach with real estate
and develops ownership from Vancouver Island to Atlantic Canada.
office, retail, and Our plan is to own real estate for the very long term, which
is why we focus on sustainability and recurring revenue. Our
apartment properties creative and unconventional approach is reflected in our mantra:
across Canada.
value
“Creating value others can’t by seeing what others don’t.”
We own, manage, Real estate is our focus, but we own businesses in other
industries including Construction, Building Services, Oilfield
lease, develop, Services, Hospitality, Pet Care, Agriculture, Technology, and
re-develop, and Corporate Finance.
re-purpose our
others can’t
portfolio on our
own, for ourselves.
by seeing
what others
don’t. we are one of canada’s largest
privately held real estate companies.
Our approach is creative and unconventional while
delivering on the fundamentals of real estate.
CO N T E N T S
2 Letter to Stakeholders / 4 Our Business By the Numbers / 7 2017 Key Accomplishments
8 Our Approach to Real Estate / 10 Residential Properties / 20 Retail Properties
24 Office Properties / 28 Development & Construction / 40 Strategic Builders Inc.
42 Our Team / 46 Strategic Cares / 52 Our Portfolio
Strategic Group 2 Annual Review 2017 Strategic Group 3 Annual Review 2017
Letter to
Stakeholders
Last year in this letter I wrote about Strategic construction on our latest residential project
Group’s corporate-wide commitment to goal “Marda”, the first purpose-built multi-family
setting and measurement. As a team, we set 71 rental building in Calgary’s vibrant Marda Loop
goals for 2017. While we did not accomplish all of neighbourhood. We also have an exciting new plan
them, we accomplished many. I am convinced that for Avenida Village on Macleod Trail. We cannot
this ambition and commitment to the goal setting disclose the details yet, but I can tell you that it will
and measurement process was the most significant transform the character of the neighbourhood.
driver of our strong 2017 corporate performance.
In 2017 we outperformed a struggling office Last year we entered into partnerships with a
market, used our creative and unconventional Canadian pension fund in 19 of our properties. This
approach to strengthen our retail portfolio, and represents a leap forward and will strengthen our
continued to implement our plan of aggressive balance sheet, reduce our cost of capital, and allow
growth in multi-family residential rental. us to devote more resources to future growth.
This is a testament to the
institutional level of reporting
“In 2017 we outperformed standards and internal
controls that we maintain
a struggling office market, across the organization.
used our creative and
One of our proudest moments
of 2017 was being named as
one of Canada’s Top Employers.
unconventional approach This is due to the strength of
our team and our ability to
to strengthen our retail live Strategic Group’s values
portfolio, and continued
around Learning, Growing,
and Having Fun.
For 2018, we have adopted a more focused approach,
and have set 15 goals around three themes:
• Increase revenue
“One of our proudest
to implement our plan of
Our support of partners such
as Calgary Food Bank, Project
• Reduce expenses
• Re-engineer our business moments of 2017
was being named
Warmth Society of Alberta,
aggressive growth in multi- and Canadian Mental Health
Association, who help take
While there may be fewer goals than last year,
I can assure you that they are no less ambitious,
family residential rental.” as one of Canada’s
care of so many people, was and we are expecting great things from our
as gratifying as ever in 2017. Team in 2018.
We also continued to support
You will read about some of our 2017
The Mayor’s Lunch for Arts
Champions, Theatre Calgary,
Calgary Opera, and Beakerhead, all whose
Top Employers.”
accomplishments in the coming pages. These contributions make Calgary a better place to live
included the implementation of zero-based- and work. I would like to thank our Team Members,
budgeting in the preparation of our 2018 budgets, tenants, and suppliers, who made it possible for us
resulting in a 20% reduction of costs in our to continue the impactful work we continue to do Riaz Mamdani
management business. We have commenced in the community year after year. ceo, strategic group
Our Success Stories 4 Annual Review 2017 Our Success Stories 5 Annual Review 2017
Our Business Strategic Group’s results in 2017 are a Number of Properties Residential Portfolio
169 2,475,318
testament to the strength of our Team.
By the It is our priority to build a highly qualified
and capable Leadership Team and empower
Numbers our people to continue to guide our growth
in 2018 and beyond.
properties square feet
Dollar Value of Assets Office Portfolio
$ 1.5
billion
2,952,298
square feet
Total Residential Units Retail Portfolio
3,916
units
1,143,766
square feet
A Privately Held Company Development Pipeline
329
team members in real estate
7
projects
530,068
square feet
Total Portfolio
7,101,450
square
feet
Our Success Stories 7 Annual Review 2017
2017 Key
Accomplishments
1
Commenced construction
on three new residential
projects totaling 271 units.
2 34 5
Continued growth
of Strategic Builders
Inc. resulting in up to
Recognized as one
of the Top Small and
Medium Employers
Secured the land use for
a six-storey apartment
building in Calgary in a
Closed 2017's largest
office leasing transaction
in Alberta.
10% savings on hard in Canada. neighbourhood that previously
construction costs. only allowed four storeys.
6 78 9
Received a land use and
development permit
approval for a 379-unit
Implemented zero-
based budgeting in our
management business,
Developed partnerships
with a major pension fund
in 19 of our properties,
Commenced construction in
Edmonton on two innovative
projects, re-purposing two
high-rise mixed-use reducing costs by 20% strengthening our balance office buildings into a total
residential tower, the first and improving the sheet and providing of 391 residential units.
residential project in Calgary effectiveness of our resources for future growth.
to include public parking. processes.
One
Status: Planning Phase
residential & retail
calgary, alberta
—
Our Success Stories 8 Annual Review 2017 Our Success Stories 9 Annual Review 2017
Strategic
Portfolio Mix
Our Approach based on gross leasable area
to Real Estate retail
1,143,766 SF development
— 530,068 SF
16% —
7%
Strategic Group’s approach to
residential edmonton
real estate includes three phases. 2,475,318 SF downtown office
445,830 SF
—
—
Visioning 35% 6%
IMAGINING, PLANNING, ANALYZING
Visioning takes place when an idea or opportunity is formed,
calgary
researched or explored. Land and asset purchases are made when downtown office
our vision for an asset’s possibilities become a proven business case. 692,812 SF
—
Creating 10%
DESIGNING, CONSTRUCTING, STABILIZING suburban office
Creating is the action that follows an approved plan. It is where 1,813,656 SF
the Team is mobilized and empowered to turn ideas into reality. —
26%
Optimizing
MANAGING, LEASING, REINVESTING
We create long-term value across our entire portfolio through the
insight of our experienced Management Team, effective leasing
strategies, and capital investment in our assets. Our fully integrated
real estate model allows for collaborations across our organization.
total
7,101,450 sf
Residential Properties 11 Annual Review 2017
Residential
Strategic Group owns and
operates over 105 purpose-
built, multi-family buildings
Properties
comprised of 3,916 units in
Calgary, Airdrie, Edmonton,
Stony Plain, Spruce Grove,
and Atlantic Canada. Our
residential apartments and
suites cover 2.4 million
square feet and represent
35% of our total portfolio.
One6
residential
calgary, alberta
—
Residential Properties 12 Annual Review 2017 Residential Properties 13 Annual Review 2017
calgary
1,156,409 SF
atlantic —
canada
Residential 1,282,117 SF 39%
—
Properties 43%
By Market
edmonton Why We Are Bullish on
Alberta Multi-Family Rental
533,202 SF
—
18%
Since 2014, Strategic Group Both Calgary and Edmonton continue to lead the
has pursued a strategy of trend of the fastest growing cities in Canada over
the last few years.
aggressive growth in multi-
According to The Economist, Calgary is known
family rental properties as the fifth most liveable city in the world and
through both acquisition scored 96.6 out of 100 in The Economist’s Global
Calgary Apartment Edmonton Apartment Historic Population
Market: By Building Age Market: By Building Age Growth: Calgary
and development. Liveability Report, which measures things like
stability, health care, and education. With an
The purpose-built multi-family rental segment is extensive product offering of newer purpose-
66
30,000 45,000 % 1,700,000
the cornerstone of our strategies for growth and built rental units, we are uniquely positioned in a
40,000 diversification. Today, Strategic Group’s residential market where over 65% of available rentals on the
25,000 68% portfolio includes a total of 2,475,318 SF and is market are greater than 50 years old. We continue
35,000 1,600,000
growing with new buildings, Marda, ONE, and Terra to build brand new amenity-rich buildings, each
20,000 30,000 in various stages of development. The Alberta with a strong sense of community, and provide our
population is at an all-time high (over 4.2 million Tenants with best-in-class customer service.
25,000 1,500,000
15,000 people), and rental demand keeps growing.
20,000
10,000 15,000 1,400,000
19% 14 15
%
%
10,000
5,000
6% 7% 5,000 5% 1,300,000
0 0 0
19 60 – 1980 – 2000 19 60 – 1980 – 2000 2014 2015 2016 2017 2018 2019
19 60 1979 1999 19 60 1979 1999
timeframe
Residential Properties 15 Annual Review 2017
Edmonton & Region
Calgary AURA
104 MacKenzie Way SW
Residential Properties
Our
& Region
Residential
TERRA
69 Gateway Dr NE
Residential
Growth
QUEEN ELIZABETH II HIGHWAY
Properties
CLARIDGE WEST APARTMENTS
3149 151 Ave
AIRDRIE
AQUA
45 Gateway Dr NE
Story
LAKE RIDGE APARTMENTS
Rental demand in Alberta continues to
STONEY TRAIL 160 & 170 Century Crossing increase due to the growing population
CENTRO
2110 Centre Street NE
and a preference for renting over owning
CR
amongst the millennial generation and other
OW
CH
segments of the population. As over 65%
CALGARY
ILD
TRA
DEERFOOT TRAIL
IL
STONEY TRAIL
HIGHWAY 1
of available rentals in Alberta are over 50
years old, our newer product offering gives
ENTRO
Strategic Group a competitive advantage
16 AVE NE
2801 43 Ave and results in exceptional lease-up time
MEMORIAL DR
frames of our new residential projects.
SARCEE TRAIL
ONE6 9 AVE SW
1410 INGLEWOOD
1528 16 Ave NW 1410 9 Ave SE
17 AVE SW
For a full list of our Strategic Atlantic
GLENMORE TRAIL
Atlantic Canada Residential Properties residential properties, please see page 54.
59 22
52 ST SE
GLACE BAY
SYDNEY
M17
1716 Centre St SE
MARDA (COMING SOON)
2101 34 Ave SW PROPERTIES IN
PROPERTIES IN
NEW BRUNSWICK
146 AVE SE NOVA SCOTIA FREDERICTON
KENTVILLE DARTMOUTH
MISSION APARTMENTS HALIFAX
515 23 Ave SW ST. JOHN
STONEY TRAIL
MACLEOD TRAIL
MISSAO
1800 4 Street SW
Residential Properties 16 Annual Review 2017 Residential Properties 17 Annual Review 2017
The Importance
of Community
We are proud of our real Our properties are surrounded by
useful, practical, and entertaining
estate business, the people conveniences like:
who work for and care
• Patios for lounging and barbecuing
about our properties, and
• Transit routes
our Tenants and Customers • Grocery stores and farmers' markets
who populate these spaces • Coffee shops, restaurants, and pubs
– together they make our • Shopping centres
• Health and wellness shops and
buildings exciting and professional services
livable communities. • Post-secondary institutions
• Parks and green space
• Recreation and cultural centres
IN OUR CUSTOMERS’ WORDS
“I’m very impressed “I am a former homeowner, so
with Strategic Group’s renting is new to me. My building
willingness to help is well-built, and the Property
their clients!” Management Team at Strategic
—scot t wilson, Group has been wonderful!
resident, centro
They listen and never make me
feel like a bother. When I put
in a work order, it’s attended to
within five minutes. Aqua has
become a great Community!”
—lana kinzer, resident, aquaResidential Properties 18 Annual Review 2017 Residential Properties 19 Annual Review 2017
Residential
Highlights
“We are excited
to bring the first
purpose-built rental
building to the
vibrant Marda Loop
neighbourhood. Welcome to Marda!
Marda is a six-storey building Living in Marda means embracing an Highlights of Strategic Group’s
Construction has
that includes 8,900 square feet urban lifestyle. There are a number Marda development:
of retail space and 66 residential of amenities steps away, including • A vibrant, mature neighbourhood
units. We are excited to bring the Safeway and organic grocery store • Affluent area with excellent
first purpose-built building to the Blush Lane, restaurants, coffee income demographics
begun, with estimated
vibrant Marda Loop neighbourhood. shops, banking and health services. • Targeting older demographic
Construction has begun, with These amenities are located within • Mix of older single-family units,
estimated completion spring 2019. a two-block radius, combined with new single-family units, and
easy access to major roads and the condos, making it uniquely
completion planned
The number of purpose-built rental heart of downtown. positioned in the market
apartments in Calgary has been in • Uniquely differentiated from
decline since the early 1990s when Marda Loop has a lively energy, is traditional purpose-built rentals
developers turned their attention very walkable, and has good public • High-end kitchen finishes, including
for spring 2019.”
to the business of building new transportation access. Residents Bosch appliances and gas ranges
condominiums. explore the neighbourhood shops • Designer bathrooms with steam
and eateries on foot, and fewer showers and multiple shower heads
Thus, we have embraced an exciting people are in cars. • Stone countertops, luxury closets
business opportunity in the
with built-in organizers and more
development of rental properties in
• Private rooftop amenity deck
key inner-city neighbourhoods
in Calgary like Marda Loop.Retail Properties 20 Annual Review 2017 Retail Properties 21 Annual Review 2017
Our retail portfolio varies from
suburban strip malls and large retail
centres, to retail amenities in our
residential buildings, housing Tenants
who provide stable cash flow.
Retail We focus on providing a superior
environment for our Tenants and
their customers – a strategy that has a
Properties
significant impact on tenant attraction,
retention, and overall experience within
the communities where we invest.
1410 Inglewood
residential & retail
calgary, alberta
—Retail Properties 22 Annual Review 2017 Retail Properties 23 Annual Review 2017
t ena nt s potl ight
In 2017, we welcomed innovative new retail Tenants and are immensely
proud of the successes they have achieved in our properties.
Dogtopia Seed N Salt
Located in our Mission 17 and Calgary Perfectly located in trendy Mission, in our
Farmers’ Market buildings, Dogtopia has a 20/20 building, Seed N Salt is a Calgary-owned,
dogtopia
passion for dogs, and has created a loving independent eatery. They craft amazing salads
place designed with what dogs want and and bowls, smoothies, and smoothie bowls,
need in mind. incredible coffee, and offer regional wine
A dog daycare, boarding, and spa facility and beer. As celebrated local food critic John
all rolled into one, Dogtopia is dedicated Gilchrist exclaimed, “Fresh and light and
to offering exceptional care for dogs, and mostly vegetarian…it’s a winner!”
currently operates more than 60 locations
in the United States and Canada. “Seed N Salt is proud to be a Tenant
in the 20/20 building. We have
So much more than simply a place to leave a
furry family member when the need arises, appreciated the service support we
Dogtopia offers dog owners a place for their have received from Strategic Group
pups to grow and develop positive behaviour, and the extra effort to ensure our
dogtopia
get much-needed exercise, socialize, and learn needs are met – allowing us to focus
how to be a more well-balanced pet. on serving our Customers and growing
our brand. We also enjoy seeing
“Strategic Group has been great familiar Strategic Group faces in the
to work with, as they have the restaurant supporting our business as
vision to support new and unique Customers. Our Team is thoroughly
businesses like Dogtopia. M17 pleased to be working in such a well-
will be our second location with maintained building.”
Strategic Group. The Team who
maintains the buildings are very —melodie-joy miller, co-owner, seed n salt
helpful and are great to work with.”
—rob loskot, m anaging s e e d n s a lt s e e d n s a lt
partner, dogtopiaOffice Properties 24 Annual Review 2017
The downtown Alberta office market As we own, operate, and manage
Office
continued to face challenges. However, we our real estate properties, our
maintained a dual focus on Suburban Class A business model allows us to work
office space and Class B small-suite office with Tenants directly. We remain
Properties
space. Calgary has the largest number of committed to our Tenants by re-
small businesses per capita in Canada. They investing in the real buildings where
are one of our more important target markets. they work and providing excellence
Our smaller floor plates better suit these in customer service.
clients and are in higher demand than large
downtown floor plates.
before
Sundance 6000
office
artist rendering: Future exterior upgrades calgary, alberta
will improve the building’s overall look and feel. —Office Properties 26 Annual Review 2017 Office Properties 27 Annual Review 2017
t ena nt s potl ight
There has been a sharp increase in co-working Stratus is a new entrant in the co-working and
and shared-office concepts globally in recent shared-office market. Stratus leases large blocks
years, sparked largely by the onset of the global of office space from landlords and then subdivides
financial crisis in 2008. Companies started the space for use by smaller tenants, providing
looking increasingly for more flexible solutions a range of supplemental office services. Stratus
to their commercial real estate problems. The combines co-working space and private office
prevalence of co-working locations and shared- rentals under one roof, and its first location
office spaces is increasingly significant and opened in an 11,000 square foot full-floor layout in
numerous studies on the future of office real Strategic Group’s Petrowest Plaza in October 2017.
estate predict upwards of a ten-to-twentyfold Leasing activity has been strong, and the location
increase in the amount of square footage is performing well ahead of projections. Stratus
dedicated to these concepts over the next already has plans in place to expand quickly into
decade. The demand for flexible office solutions additional buildings, with new downtown Calgary
is rising. In fact, this trend is being noted by locations opening in Strategic Group’s First Street
some of the world’s largest landlords who are Plaza and Place 9-6 in the first half of 2018, along
investing heavily in co-working and shared-office with plans for additional locations thereafter.
businesses themselves.
“My Stratus office is my first workspace since
working from home the last several years. My
experience has been outstanding so far! The office
choices were spacious and bright, and the building
location is top-notch. I did my research, and
Stratus was my best choice by every measure.”
—m arc l a mbert, rtd learning ltd., str atus member Stratus
office & retail
calgary, alberta
—Development & Construction 28 Annual Review 2017 Development & Construction 29 Annual Review 2017
Development &
Construction:
“Creating value
others can’t by
seeing what
others don’t.”
Strategic Group’s creative and unconventional thinking empowers our
Team to act on opportunities that create value, to innovate and develop
solutions that stand apart, and then to deliver outstanding results.
Our approach is creative and
unconventional while delivering on
the fundamentals of real estate.Development & Construction 30 Annual Review 2017 Development & Construction 31 Annual Review 2017
Completed
Projects
Our focus on residential rental growth challenges us
daily to discover the best possible delivery methods.
We remain committed to seeking opportunities for
redevelopment of existing assets, expansion of current
properties, new construction, and acquisitions. It is
extremely gratifying to see our properties full of life
and welcoming Tenants.
Look What We’ve Achieved
Terra Phase 1 & 2
status: complete
• Airdrie’s newest two and three bedroom
rental townhomes
• Convenient proximity to all amenities
• Features spacious, modern layouts between
1,100 and 1,300 SF each
• Includes attached garages
ONE6
status: complete
• Pet-friendly residential apartment building
located along 16 Ave NW with 60,047 SF
• Amazing rooftop patio with BBQs
• Conveniently located across from North Hill
Centre, SAIT, and ACAD
• Five minute LRT ride to the downtown core
and University of Calgary
• Leading Built Green Bronze Certified building
One6
residential
calgary, alberta
—Development & Construction 32 Annual Review 2017 Development & Construction 33 Annual Review 2017
Current Projects Future Projects
Through research, creative thinking, first-class Our Team continually seeks new opportunities to deliver
design, and best-in-class construction, we are smart, timely real estate solutions. The projects listed
creating new developments that benefit the below are already in the research and planning phases.
Community, and provide our Customers with rental
B E YO N D
homes and amenities to meet their evolving needs.
AND
The Centre West Building
Re-Purposing and Expansion
ONE
calgary, ab
Future is edmonton, ab status: planning phase
Bright status: planning phase
• Office-to-residential re-purposing
• 36-storey mixed-use building with
approximately 100,000 SF of space
project with 214 units with a total of and more than 350 rental units
218,045 SF • Situated in the heart of Calgary’s
• Located in the busy government Beltline district
district and close to amenities • Expected completion 2020
and transit
We Are Marda Harley Court • Expected completion late Terra
calgary, ab edmonton, ab
Always status: under construction status: re-purposing under
2019 – early 2020 airdrie, ab
status: planning phase
Creating • Six-storey building with 8,900 SF of construction Barron Building Re-Purposing • Located right across from Aqua
retail space and 66 residential units • Current office building with calgary, ab • Phases one and two are complete
• First purpose-built building in the 156,000 SF being re-purposed into status: planning phase with four more phases to go
vibrant Marda loop community 177 residential rental units • Mixed-use property being re-
• Expected completion spring 2019 • Will feature one and two purposed into office/retail and 93
bedroom apartments residential rental units with a total
• Located in close proximity to the of 87,465 SF
Alberta Legislature, MacEwan • Plans will honour the historical
University, University of Alberta, significance of the building and make
and NorQuest College it a leading space for modern use
• Expected completion early 2020Development & Construction 34 Annual Review 2017 Development & Construction 35 Annual Review 2017
Office
Strategic Group continues to adjust its portfolio to reflect a
Re-Purposing changing real estate landscape, converting office properties
Rationale to residential rental units due to three key factors:
Development
1
& Construction
The office markets in Calgary
and Edmonton are struggling
– it is time to innovate.
Leading the Way with
Office-to-Residential Re-Purposing
2
The 2017 year was an exciting one Additionally, the Barron Building,
for Strategic Group’s Development Centre West, Stephenson Building,
Team, with the formation of an in- and 926 were all proven viable as
house construction group, Strategic office-to-residential re-purposing, and
Builders Inc. (SBI). SBI completed design work has already commenced. Re-purposing is a cost-effective way
Airdrie’s Terra Townhomes and The 2018 and 2019 years are slated to develop residential property.
Calgary’s One6, adding 158 units to to be busy with approximately 1000
the organization’s portfolio. units in the pipeline, totaling close
In addition to delivering the new to 1.0 million square feet of built area
inventory, we obtained development and $200 million in construction
permits for Marda, the ONE Tower, costs. With many of its office
3
and Harley Court. buildings located on highly desirable
residential locations, Strategic Group
has become an industry leader in
office-to-residential re-purposing.
Re-purposed buildings are located
in mature neighbourhoods that
are desirable for residential use.Development & Construction 37 Annual Review 2017
Harley Court is a property with tremendous potential for
residential re-purposing. It totals 156,000 square feet and
Our Approach to
will accommodate more than 170 one- and two-bedroom Re-Purposing Office
apartments. Apartments will lay out effectively on the Buildings to Multi-
existing floor plate, and the building is in an employment,
education, and government district, and therefore destined
Family Residential
to appeal to the Edmonton Community.
1 Developing creative residential unit plans
We have relocated existing Harley Court Tenants to nearby that maximize functionality and efficiency
CN Tower, which was also experiencing occupancy issues. within the parameters of a typical office
CN Tower is an iconic building located in the heart of floor plate, which is larger than a standard
downtown Edmonton adjacent to Rogers Place, Royal Alberta residential floor plate.
Museum, and Edmonton City Hall.
2 Designing and building facade upgrades
Using this creative and unconventional approach, we were to redefine the character of the building
able to resolve vacancy issues facing two of our office as residential.
cn tower, edmonton properties, and create a new residential development located
in close proximity to work and entertainment. We are proud 3 Closely collaborating with Strategic
to be integrating people, neighbourhoods, and mixed-use Builders Inc. (SBI) to manage construction
ca s e s tudy: opportunities so that communities are created and can costs and ensure projects remain
benefit from living, working, and playing in a versatile space. economically feasible and on schedule.
Harley Court Harley Court in Transition
& CN Tower
Using our creative and
Problem: Two downtown Edmonton
unconventional approach, office buildings near each other
experience vacancy issues.
we were able to resolve
Solution: Re-purpose one of the
vacancy issues facing two buildings as a multi-family rental
property and move its commercial
of our office properties. Tenants to occupy the vacancy in the before after
other building.Development & Construction 38 Annual Review 2017 Development & Construction 39 Annual Review 2017
ca s e s tudy:
Stephenson
Building
The Stephenson Building is an upcoming re-purposing
from office to mixed-use residential and retail that
was initiated in 2017. This transformation will result
in prime urban real estate that will appeal to a young,
independent, professional demographic.
Through our creative and unconventional approach,
we are able to identify an ideal residential location.
Located in Calgary’s desirable Beltline Community,
the Stephenson Building is surrounded by picture-
perfect amenities:
• Directly across the street from Midtown Co-op
(grocery store)
• Close proximity to employment, post-secondary
schools, and the downtown core
• Excellent vehicle access
• Located on a main bike route before
• Approximately 500 meters from an LRT station
This re-purposing is another example of Strategic
Group in action, creating housing opportunities that
artist rendering: Future exterior upgrades
add density and vibrancy to urban Calgary.
will improve the building’s overall look and feel.
Stephenson Building,
Re-Purposed
office & retail
calgary, alberta
—Strategic Builders Inc. 40 Annual Review 2017
SBI Cost
Saving Strategies
TIME IS MONEY
Operate on condensed schedules to complete
jobs in a timely fashion, lowering our overhead.
Strategic
Builders
Strategic Builders Inc. (SBI) is our in-house
construction management company that
provides pre-construction and construction
services of a calibre that is not otherwise
NEGOTIATION SAVES THE DAY
available from another service provider. Research new supply chains and
negotiate for better prices.
As part of the Strategic Group, SBI works
closely with our Development, Property
Management, and Leasing Teams to execute
on our integrated vision. The creation of SBI
has allowed us to bring product to market
faster and at a lower cost.
Strategic Group is a credible, capable, and
committed organization in the real estate
industry. SBI further showcases this strength
by consistently delivering commercial and
residential buildings of exceptional quality DIRECT IS BEST
and innovation. Cut out the middle man by working directly
with distributors and manufacturers. Aura
residential
airdrie, alberta
—Our Team 42 Annual Review 2017
Learn, Grow,
and Have Fun
Every Day
Strategic Group’s Executive Team, under Riaz Mamdani’s
leadership, is comprised of talented and experienced
individuals who offer a wealth of real estate acumen. They
are dedicated to ensuring each Team Member at Strategic
Group has access to the resources and support required to
perform at their best and to learn, grow, and have fun.
s t r at e g i c g ro u p ’s e x e cu t i v e t e a m
Learning Growing Having Fun
We believe that • We promote a culture where our Team contributes to
challenging and meaningful work.
• We support advancement and promote an
entrepreneurial approach where Team Members
• We support a fun, laughter-filled, enthusiastic,
and exciting atmosphere.
empowered, creative • We seek out Team Members who embody our core values
around Business, Community, and People, and who are
“own” their work, with the support of creative
and unconventional leaders.
• We celebrate regularly with monthly rooftop BBQs,
Sinulog, Diwali, Valentine’s Day, St. Patrick’s Day,
leaders are vital to our committed to our mantra, “Creating value others can’t • Every Team Member at Strategic Group adds Cinco de Mayo, Stampede, Kwanzaa, Holi, Chinese
by seeing what others don’t.” value to the company. New Year, Halloween, and Christmas.
success, and we are • Our continuing education program provides our Team • Team Strategic Awards recognize Team Members • Our Team Members are active in the Community and
dedicated to hiring, Members with the right tools and training to grow and
learn new skills.
who demonstrate and exemplify our core values.
• Nominations for winners of awards are chosen by
take the time to volunteer for our many Community
engagement activities and partners, including the
rewarding and retaining • We demonstrate that we value our Team Members on a
daily basis, which improves Customer service, maintains
fellow Team Members. Mayor’s Lunch for Arts Champions, Beakerhead, Lilac
Festival, the Calgary Food Bank, and much more.
the very best. our high standard for our properties, and better controls
our costs at every level of our business.Our Team 44 Annual Review 2017 Our Team 45 Annual Review 2017
One Team, One Vision Senate of Canada 150th Anniversary Medal
The Senate 150th Anniversary Medal celebrates the
achievements of Canadians who have made significant
contributions to their Community, and commemorates
the 150th anniversary of the first sitting of the Senate on
November 6, 1867.
Congratulations to Team Member Nabeel Ramji, who
won a medal honouring his generosity, dedication,
volunteerism, and selfless service. He embodies the
values that bind us together as Canadians and make
Canada a caring and compassionate country. Nabeel is
celebrated for his work on accessibility and has served
on several accessibility advisory committees. He aspires
to make Calgary the most accessible city in the world!
team member nabeel ramji with the speaker of the
senate and senator douglas black
Congratulations to
Our 2017 Honourees!
An Intelligent and Versatile Team with a Team Strategic Awards honour Team Members
Bold Vision for Canada’s Real Estate Industry who best demonstrate and exemplify our values.
Our company’s core values of LEARNING, GROWING, and HAVING FUN propel
us forward into the future and give each Team Member the ability to nurture their
role and responsibilities while engaging with our Customers and Community.
Canada’s Top 100
Employers 2017 Award
Strategic Group is proud to be among the 2017 Top Small and Medium
Employers in Canada! The competition recognizes exceptional “small
and medium enterprises” (SMEs) across the country, evaluated
by the Top 100 editors at Mediacorp Canada Inc. across eight
elise bacon madeline tremain
areas: physical workplace; work and social atmosphere; health, Vice President, Property Manager, Residential
Corporate Accounting Property Management
financial, and family benefits; vacation and time off; employee
— —
communications, performance management; training and
For her long-standing service and For excellence in property management
skills development; and Community involvement.
dedication to Strategic Group, creativity, and for serving our tenants with an attitude
and commitment to Community. of gratitude and a spirit of service.Strategic Cares 46 Annual Review 2017 Strategic Cares 47 Annual Review 2017
Deerfoot Court Renovations
Commitment Deerfoot Court is a three-storey building with 74,536 square
feet of office space located in the Airways Industrial Park in
to Our Tenants
northeast Calgary. The property is ideally situated near major
roadways including McKnight Boulevard, Barlow Trail and the
TransCanada Highway, but was in need of reinvestment and
renovation in order to retain its value.
Caring for Our Customers Interior renovations of the lobbies and washrooms were
completed in 2016, and in 2017, exterior stucco and insulation
before
renovations were completed. The resulting new stucco
Our Team is focused on proactively managing our properties, dramatically transformed the look of the building, and the
with particular commitment to improved performance, positive overall thermal performance of the building also improved,
Customer experience and value engineering at our properties. resulting in higher efficiency and lower operating costs.
These renovations also added value for our Tenants,
improving the overall quality of their leased space, and
ensuring their building is safe and energy efficient.
after
HOW WE SAVE $ FOR StrategicFix.ca Completed
OUR CUSTOMERS
This Strategic Group web portal for Tenant Building
service inquiries automatically directs every Improvements:
53% Savings new request to the correct Team Member,
• Hallways and underground
Emergency Action at Calgary
Due to increased waste/organic allowing us to respond to our Customers
parking lots of Aura Farmers’ Market
recycling services, including those quickly and efficiently. We effectively manage
• Hallways and parking lots of
administered by local municipalities. our people and our buildings while having the Lakeridge 143 and 99 Two weeks before Christmas, an Strategic Group’s Team, including
ability to track and monitor service request • Inglewood and M17 hallways eight-inch City water line burst a plumber, electrician, and
times and progress reports. • Glenmore Commerce open one afternoon, causing restoration and cleanup crew were
Energy Savings Court atrium damage to the Calgary Farmers’ already on site making repairs.
It is a priority to ensure our Tenants are
Reduced utility consumption on an • Village Square parking lots Market at the most inopportune Our response time was immediate,
benefiting from building updates, with the goal • Airways Business
ekWh basis by an additional 7%. time – the height of the festive demonstrating our commitment
of improving the spaces where our Customers Plaza corridors season, when the Market and to service and the safety of our
live and work. The quality of spaces and • Place 9/6 new entrance
its vendors are at their busiest. vendors and their Customers.
$165,000 Savings places we own, operate, and manage makes a canopy and paving
Water gushed throughout the
difference to the way our stakeholders work or • Mission Centre curtain wall Within 4.5 hours, our Team’s efforts
LED light retrofitting has had a building, and also outside in
engage with their surroundings, thus positively and parkade upgrade ensured that a safe, temporary
significant impact on energy costs. the parking lot. Its force was so
impacting our own bottom line. water hookup was in place. The
Our Energy Management Team strong that it even blew a portion
regularly attends educational outpouring of support within the
of an exterior wall open.
meetings to ensure we remain Community was tremendous, and
ahead of the curve in our energy Within the hour it took the City the next day the Market was not
consumption initiatives. We are proud to shut off the water to prevent only open again, but experienced
of the fact that our occupied spaces further flooding in our building, record sales that weekend.
provide efficient services, which in
turn make our buildings competitive “The operations and building manager did an amazing
and affordable for our Tenants. job and were at the market through the night until it
was up and running. It was team work from all parts.”
—sharl a dube, owner, the cherry pitStrategic Cares 48 Annual Review 2017 Strategic Cares 49 Annual Review 2017
Strategically Energy Reduction
Green
• We install occupancy sensors and timers in common areas to
automatically turn lighting on and off
• We continuously monitor our HVAC systems
• We maximize daylight and window views in occupied spaces
• All appliances we provide or install are ENERGY STAR® compliant
Year over year, we manage several green initiatives
to help reduce our environmental impact.
Earth Hour Challenge
Every year we participate in Earth Hour by encouraging our Property Managers and
How does Strategic Group
Tenants to power down, turn off, and unplug all lights, computers, and electronics.
Through these actions, we reduce our energy usage and learn how we can make a
difference and positively impact planet Earth. Congratulations to the 39 Strategic-
make a difference? owned buildings who participated in this international event!
Together, our Team, our Customers and our
Communities are creating change, positively
impacting our environment, which has a profound Water Recycling
impact on our portfolio’s operating costs. Conservation Matters
• We install automatic flush toilets • Dedicated recycling rooms for office
and faucets in bathrooms and retail-generated waste
• Renovated bathrooms include • Organic waste recycling programs
sensor-based low-flow fixtures • Toner cartridges are recycled
S T R AT E
GIC PR
OPER TY ENE
RG Y USAG
E, 2012 –
2017
Environmental Initiatives
• We use touch-free foam soap and hand sanitation dispensers
• We provide bike racks, storage units, locker rooms, and shower
facilities to encourage employees to bicycle to work
• We promote green housekeeping programs, and use sustainable
cleaning productsStrategic Cares 50 Annual Review 2017
Calgary Opera Theatre Calgary
Strategic Cares “Strategic Group has demonstrated its commitment to mobilizing
a Community through art with its support of the Mamdani
“Theatre Calgary is honoured to count Strategic Group as
a valued Community partner since 2012. Strategic Group’s
Opera Centre. Not only is the building in the Beltline home to support has helped Theatre Calgary both expand our reach
A lasting impact on the wellbeing of our Team Members, Calgary Opera, but it also serves as a cultural hub for other arts into the Community through supporting our Emerging Artists
customers, communities, and environment. organizations and not-for-profit groups looking for affordable
space to meet, rehearse, and perform. Strategic Group recognizes
programming with Shakespeare by the Bow and elevate our
patron experiences within our theatre. It is a partnership we
the extraordinary influence the arts have on our Community, truly value”.
and has partnered with Calgary Opera to provide and maintain a
physical space for magic to happen.” —s ar ah hughes, a ssociate direc tor of
development, theatre c algary
IMPACT. PRIDE. LEGACY. At Strategic Group, we are committed to building strong, sustainable —s uz anne boyd, direc tor of fund development,
Communities by giving back, and by improving where we live and work through our continued support c algary oper a
of the arts, education, Community events, health and safety programs, and charitable organizations. We
make it a priority to implement environmentally friendly programs and policies that make as much sense
for the planet as they do for our business.
We believe in creating healthy and safe buildings that embrace innovative environmental practices and
Beakerhead
energy efficiencies. Our Strategically Green program helps us identify and implement green initiatives M
ayor’s Lunch
that help reduce our overall environmental impact. for Arts Champions “Every year we come to Strategic Group with zany ideas — do
you have a building that can be wrapped into a massive artwork,
We are committed to building on our caring legacy by growing our campaigns and the impact we make “As our Champion Sponsor, Strategic Group is an instrumental or turned into an immersive theatre experience or a pop-up
in our Communities. Our Stakeholders and Community Partners help us achieve the highest level of partner for the Mayor’s Lunch for Arts Champions. They show molecular gastronomy lounge? And every year, they give it
great leadership through their support of the arts, they provide careful thought…and say yes! These are the kinds of partners
engagement and impact we strive to see in our growing Communities.
enthusiastic volunteers for the event, and every year they look for that make it possible to stage Beakerhead in Calgary — clear
new opportunities to engage and inspire other arts champions.” supporters of a creative city.”
—p at ti pon, president and ceo, c algary —m ary anne moser, president and co-founder,
arts development beakerhead
Calgary Food Bank
Canadian Mental
“‘Let’s Eat!’ – Strategic Group’s campaign against hunger has been involved with the Food Bank for quite
Health Association
some time. The 2017 campaign was a great success, thanks to the efforts of Strategic Group’s Team Project Warmth
Members, Tenants, and Suppliers, who collaborated to collect non-perishable food items and donations. “CMHA Calgary was very pleased to negotiate a 10-year lease with
Strategic Group to develop Community-facing space to better
Society of Alberta
Here is a Client Impact Statement: serve Calgarians. Our new space at the Parallel Centre is steps from “Project Warmth highly values our relationship with Strategic
a CTrain station making it easy for clients to find us and creating Group. Over the past years, Strategic Group has been one of
“I recently had to use the food bank. While I have always donated, I never used
significant visibility of our services. Having our Welcome Centre our most dedicated suppliers and volunteers! The help received
the Calgary Food Bank…I have hope because of the food bank and I’m no longer in such a prominent location helps reduce the stigma surrounding from Strategic Group has elevated our ability to provide the
ashamed at needing it because I am doing whatever it takes to get on my feet and mental health by being a visible part of our Community. In addition needy in our city with essential items, delivered to the widest
care for my kids. Donate to it, see it, volunteer and hope you never need it – but to the favourable lease terms, Strategic Group also provided us spectrum of reach. Strategic Group helps us cope with today’s
if you do, know it’s there and it is beyond what you can imagine in the help it with a significant donation of over $300,000, which offset some of ever-increasing requests from the many agencies that access
provides. You honestly have no idea how far your donation goes until you see the the renovation costs. CMHA Calgary looks forward to a long-term our program. This partnership has resulted in distributing
partnership with Strategic Group.” thousands of coats and items to keep Calgarians warm in one of
food bank in operation firsthand or need it!”
the harshest winters ever! A heartfelt “Thank You!”
—d ave ada ms, senior
On behalf of the clients, volunteers and staff of the Calgary Food Bank please accept our sincere thanks finance leader, —j onathan fesik, administr ation vice
and appreciation for continuing to support us with your amazing campaign ‘Let’s Eat!’” c anadian mental president, projec t warmth societ y of alberta
—lynn mcintosh, resource development coordinator, c algary food bank health a ssociation –
c algary regionOur Portfolio 52 Annual Review 2017 Our Portfolio 53 Annual Review 2017
Our
Portfolio building name city use sf
Circle Square Edmonton Office/Retail 79,979
CN Tower Edmonton Edmonton Office/Retail 294,913
Deerfoot 17 Calgary Office 67,976
Deerfoot Court Calgary Office 74,865
Duncan Mall Duncan Retail 139,950
Duncan Plaza & Village Duncan Retail 97,285
First Street Plaza Calgary Office/Retail 71,773
building name city use sf Glenmore & Centre Calgary Retail 68,159
COMMERCIAL 1112-1124 Calgary Office/Retail 8,435 Glenmore Commerce Court Calgary Office/Retail 59,244
PROPERTIES
12-10 - 1216 Calgary Retail 62,483 Harley Court Edmonton Office 153,497
12-10 - 1230 Calgary Office 11,434 Kensington Place Calgary Office/Retail 18,577
1800 Calgary Office/Retail 30,941 Louise Block Calgary Office/Retail 26,295
20/20 Calgary Office/Retail 129,676 Macleod Place 1 & 2 Calgary Office/Retail 183,473
32 Primrose Dartmouth Office 4,290 Macleod Place - 201 Calgary Retail 7,747
411 Calgary Office 44,959 Macleod Place - 205 Calgary Retail 3,712
534 Calgary Office/Retail 24,486 Macleod Place - 5918 Calgary Office 5,176
5/5 Calgary Office/Retail 97,768 Macleod Place - 6012 Calgary Office 6,016
744 Calgary Office 49,758 Macleod Place - 6016 Calgary Office/Retail 5,718
808 Calgary Office 79,427 Mayfield Business Centre Edmonton Office 102,465
926 Calgary Office 85,360 Mission Centre Calgary Office/Retail 76,657
Airways Business Plaza Calgary Office/Retail 67,105 Parallel Centre Calgary Office/Retail 81,023
Arriva Podium Calgary Office/Retail 23,999 Paramount Building Calgary Office/Retail 52,817
Avenida Place Calgary Retail 60,900 Parkwood Office Centre Edmonton Office/Retail 40,792
Avenida Village Calgary Retail 106,038 Pegasus Business Park Calgary Office 14,205
Barclay Square Calgary Office 34,574 Petro Fina Calgary Office/Retail 162,863
Blackfoot Centre Calgary Retail 138,782 Petro West Plaza Calgary Office/Retail 36,927
Centre 1000 Calgary Office/Retail 55,669 Place 9-6 Calgary Office 156,288
Centre Eleven Calgary Office 62,515 Shelbourne Place Calgary Office/Retail 25,571Our Portfolio 54 Annual Review 2017 Our Portfolio 55 Annual Review 2017
building name city use sf building name city use sf
Stephenson Building Calgary Office/Retail 61,412 40 Brule Dartmouth Residential 13,292
Strategic Centre Calgary Office/Retail 50,573 67 Caledonia Dartmouth Residential 7,752
Sundance Place 1000 Calgary Office 171,422 Centre West Edmonton Residential 125,417
Sundance Place 3000 Calgary Retail 11,862 Centre West Retail Edmonton Retail 2,545
Sundance Place 4000 Calgary Retail 13,433 Centro Calgary Residential 45,664
Sundance Place 6000 Calgary Office/Retail 30,013 Centro Retail Calgary Retail 1,096
Sundance Place Calgary Office/Retail 175,524 Claridge West Edmonton Residential 81,014
Sunpark Plaza Calgary Office 60,022 4 Crystal Dartmouth Residential 9,456
Village Square Mall Calgary Retail 61,547 65, 67, 69 & 73 Dominion Glace Bay Residential 37,922
Wesley Church Building Calgary Retail 28,269 411 Ellerdale St. John Residential 68,060
Willow Park Centre Calgary Office/Retail 78,933 Entro Stoney Plain Residential 108,159
5 Forbes Halifax Residential 11,550
6, 8, 9 & 14 Galaxy Dartmouth Residential 35,460
451 Herring Halifax Residential 11,400
498 Herring Halifax Residential 7,600
building name city use sf 532 Herring Halifax Residential 23,165
RESIDENTIAL 104 & 106 Albro, 127 Slayter Dartmouth Residential 18,611 534 Herring Halifax Residential 23,165
PROPERTIES
117 Albro Dartmouth Residential 7,678 536 Herring Halifax Residential 18,455
1 & 5 Alpha St. John Residential 16,600 538 Herring Halifax Residential 18,455
4 Alfred Dartmouth Residential 6,799 540 Herring Halifax Residential 14,415
Aqua Apartments Airdrie Residential 114,348 550 Herring Dartmouth Residential 12,778
3 Autumn Halifax Residential 11,857 611 Herring Dartmouth Residential 6,300
Aura 1000 Airdrie Residential 79,184 1410 Inglewood Calgary Residential 39,195
Aura 2000 & 3000 Airdrie Residential 115,137 1410 Inglewood Retail Calgary Retail 15,897
Aura 4000 Airdrie Residential 39,589 100 Inverness St. John Residential 7,975
Aura Retail Airdrie Retail 23,736 7 Jackson Dartmouth Residential 22,730
Barron Calgary Residential 69,395 14 Jackson Dartmouth Residential 8,912
Barron Retail Calgary Retail 15,440 39, 43 & 45 Jefferson Sydney Residential 26,700
175 Britain St. John Residential 26,850 7 Kennedy Dartmouth Residential 22,216
20 Brule Dartmouth Residential 7,290Our Portfolio 56 Annual Review 2017 Our Portfolio 57 Annual Review 2017
building name city use sf building name city use sf
9 & 11 Kennedy Dartmouth Residential 46,328 44 Primrose Dartmouth Residential 14,417
15 Kennedy Dartmouth Residential 89,409 151 Queen Fredricton Residential 63,777
79 & 81 Lakecrest Drive Dartmouth Residential 123,280 1 Reading St. John Residential 10,186
Lakeridge 99 Spruce Grove Residential 88,798 2 Reading St. John Residential 8,334
Lakeridge 143 Spruce Grove Residential 129,814 3 Reading St. John Residential 10,186
M17 Calgary Residential 34,221 6 Reading St. John Residential 6,482
M17 Retail Calgary Retail 8,295 7 Reading St. John Residential 9,790
Marda Calgary Residential 42,949 10 Reading St. John Residential 6,482
Marda Retail Calgary Retail 8,978 11 Reading St. John Residential 6,482
Missao Calgary Residential 58,400 14 Reading St. John Residential 9,701
Mission Apartments Calgary Residential 11,390 15 Reading St. John Residential 8,010
155 Mystery St. John Residential 73,600 19 Reading St. John Residential 6,292
190 Oakdene Kentville Residential 33,008 23 Reading St. John Residential 8,010
ONE Calgary Residential 249,736 44 River Halifax Residential 10,350
ONE Retail Calgary Retail 9,240 24 Roleika Dartmouth Residential 12,675
ONE6 Calgary Residential 53,123 237 Roleika Dartmouth Residential 19,575
ONE6 Retail Calgary Retail 6,924 7 Roxbury St. John Residential 8,775
85 Pinecrest Dartmouth Residential 13,760 3, 4, 8 & 9 Shamrock St. John Residential 32,787
105 Pinecrest Dartmouth Residential 5,334 Shelbourne Calgary Residential 2,752
109 Pinecrest Dartmouth Residential 4,015 Terra (Phases 1 & 2) Airdrie Residential 66,996
111 Pinecrest Dartmouth Residential 4,015 Terra (Phases 3-6) Airdrie Residential 134,330
113 Pinecrest Dartmouth Residential 6,166 12 Trinity Darthmouth Residential 8,700
117-119 Pinecrest Dartmouth Residential 10,920 38 Trinity Dartmouth Residential 8,108
123 Pinecrest Dartmouth Residential 11,560 490 Wiley Windsor Residential 22,123
133 Pinecrest Dartmouth Residential 4,515
384.5 Portland Dartmouth Residential 19,500
19 Primrose Dartmouth Residential 15,120
28 Primrose Dartmouth Residential 6,026
29 Primrose Dartmouth Residential 14,850
30 Primrose Dartmouth Residential 6,026A special thank you to all of our Team Members, Stakeholders, Tenants, Customers, and Community Partners for all their ideas, loyalty, support, and hard work in 2017. It is because of your contributions to our fully integrated company and Community that Strategic Group experiences so many successes year after year.
calgary office edmonton office atlantic canada office Strategic Centre CN Tower 400, 630 – 8 Avenue SW 104, 10004 – 104 Avenue NW 32 Primrose Street Calgary, AB T2P 1G6 Edmonton, AB T5J 0K1 Dartmouth, NS B3A 4C5 t 403.770.2300 t 780.454.8018 t 902.422.0200 StrategicGroup.ca
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