Ownership returns to Canada Purplebricks acquired ComFree (which was rebranded to Purplebricks Canada in 2019) and DuProprio from Yellow Pages Limited in 2018. The deal announced today brings ownership of both of those entities back to Canada. Purplebricks Canada and DuProprio will continue to be run by the existing teams according to their respective business plans. Desjardins wants to keep the companies’ current employees and honour the companies’ existing contracts.
Two different business models Based out of offices in Hamilton, Winnipeg and Edmonton, Purplebricks Canada provides fixed-fee innovative real estate brokerage services for home sellers in Ontario, Manitoba and Alberta—provinces where the financial bar for entry into the real estate market is often high. In Quebec, DuProprio has offices in Lévis and Montreal and provides real estate services without an agent. The company is associated with more than 20% of residential real estate sales in Quebec.
Desjardins continues pan-Canadian growth “Desjardins is already the top mortgage lender and home insurer in Quebec and is one of the top three property and casualty insurers in Ontario,” says Guy Cormier, President and CEO of Desjardins Group. “Buying or selling a home is one of the biggest—and most stressful—decisions that our members and clients, and other consumers will make in their lives. As a co-operative organisation, it was a natural fit for us to acquire Purplebricks’ holding in Canada, present in four different provinces and sharing Desjardins’s strong member and client culture. Through our competitive mortgages and thanks to this acquisition, we will keep on supporting people, whether they choose a commission structure, a fixed-fee service or support without an agent,” says Cormier.
Good news for Canadian onwnership “It’s great news for our company, our clients and our employees to have ownership of the company back in Canada,” said Randall Weese, licensed Broker of Record, who oversees the customer service and compliance departments at Purplebricks Canada. “Desjardins is a strong cooperative financial group and we’re excited to be joining the family. Our services were created to be a modern and practical alternative to traditional real estate brokerage services. We help Canadians buy and sell and save thousands in commission fees while offering cutting-edge technology and exceptional service. With Desjardins, we’re going to continue our work helping consumers get the most out of the sale of their property.”
Real estate market in Quebec and Ontario On June 30, Desjardins economists updated their Spotlight on Housing and looked at how the real estate market in Quebec and Ontario is rebounding after the lockdown due to COVID-19.
About Desjardins Group Desjardins Group is the leading cooperative financial group in Canada and the sixth largest in the world, with assets of $326.9 billion. It’s the leading mortgage and home insurance provider in Quebec and a top three property and casualty insurer in Ontario. It has been rated one of Canada’s Top 100 Employers by Mediacorp. Desjardins meets the diverse needs of its members and clients by offering a full range of products and services to individuals and businesses through its extensive distribution network, online platforms and subsidiaries across Canada. Ranked among the World’s Strongest Banks by The Banker magazine, Desjardins has one of the highest capital ratios and credit ratings in the industry. In 2015, Desjardins acquired the Canadian operations of US mutual State Farm.
About Purplebricks Canada Purplebricks is a full-service real estate brokerage providing Canadian home sellers and buyers with the best REALTOR® expertise and customer service, supported by cutting-edge technology. Sellers save tens of thousands of dollars using our fixed fee service, rather than paying a commission based on the value of their home, and home buyers receive thousands in cash back. Purplebricks operates in Ontario, Alberta and Manitoba.
REALTOR®. Member of the Canadian Real Estate Association and more.
About DuProprio Thanks to its devoted team, DuProprio pursues the mission of providing to Quebec homeowners the support and services they need to sell their property without commission. Over 300,000 consumers have sold their property through DuProprio’s services since it was founded in 1997. Today, DuProprio features the most liked real estate site in Quebec, showcasing over 20,000 properties for sale.
Caution concerning forward-looking statements Certain statements made in this press release, including those concerning the management of businesses acquired as a result of the transaction, maybe considered forward-looking statements. By their very nature, forward looking statements involve assumptions, uncertainties and inherent risks, both general and specific. It is therefore possible that, due to many factors, the forward-looking statements contained herein fail to materialize or prove to be inaccurate and that actual results differ materially therefrom. A number of factors, certain of which are beyond Desjardins Group’s control and the effects of which can be difficult to predict, could influence the accuracy of the forward-looking statements contained in this press release. Although Desjardins Group believes that the expectations presented in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. Readers are cautioned by Desjardins Group not to place undue reliance on these forward-looking statements when taking their decisions. Desjardins Group does not undertake to update any oral or written forward-looking statements that could be made from time to time by or on behalf of Desjardins Group, except as required under applicable securities legislation.
SOURCE Desjardins Group
For further information: (media inquiries only): Public Relations, Desjardins Group, 514-281-7000 or 1-866-866-7000, ext. 555 3436, [email protected]; Purplebricks Canada, Mathilde St-Vincent, CASACOM, [email protected], 514 242-6852
Commercial Real Estate: Navigating Opportunities And Challenges Ahead (Video)
25 November 2020
To print this article, all you need is to be registered or login on Mondaq.com.
Uncertainties currently abound in many sectors and commercial
real estate is no exception. While the COVID-19 pandemic has caused
some level of distress in certain sectors of the commercial real
estate market, it has also opened doors for stakeholders and
presented opportunistic transactions with their own unique set of
risks and important structuring considerations, particularly in the
restructuring and insolvency space.
In this video, Graham Rawlinson and Charlene Schafer briefly
discuss what to expect in our upcoming webinar on December 3 on
commercial real estate. Some of the key topics to be explored
preparing for bankruptcy or insolvency opportunities that may
affect the Canadian real estate market, and what to consider when
dealing with assets going through some type of a debtor/creditor
funds focused on distressed and opportunistic real estate
assets, and whether the ongoing distress in the market will
continue to present new opportunities; and
distressed opportunities south of the border and unique
considerations affecting the U.S. commercial real estate
Play the short clip below and register for the webinar here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Real Estate and Construction from Canada
Montreal-based software company Nakisa is expanding into the real estate technology market with the acquisition of IMNAT Software, a cloud-based real estate management solution.
Nakisa CEO Babak Varjavandi said IMNAT’s real estate management technology will be added to Nakisa’s lease management solutions portfolio.
“By combining the breadth of our lease accounting knowledge with their real estate expertise, we’re poised to disrupt the corporate real estate market, which is currently reliant on outdated processes and proptech legacy software,” he told RENX.
IMNAT is also Montreal-based. The start-up has about a half dozen employees and has entered the sales phase for its platform, which it markets specifically at businesses which manage their real estate.
“Our reimagined corporate real estate solution will offer customers a complete modern end-to-end solution that leverages the Nakisa cloud platform and provides full ITGC (IT general controls), GDPR (General Data Protection Regulation), user management and more,” Varjavandi said. “We truly believe we can disrupt this market because I think we are much further ahead . . . of our competitors with the technology.
“At the end of the day, because of the technology that we have, we believe we can bring in all these other pillars to provide an end-to-end solution.”
He said IMNAT Software’s technology will complement and extend Nakisa’s existing lease accounting product line and address increasing demand for global corporate real estate management solutions.
The acquisition is set to close on Jan. 1, 2021.
Nakisa and IMNAT
Nakisa released the first version of its product in 2000. The company has two lines of business – one addressing human resources and the other in leasing. It will now expand to provide end-to-end lease management which will include real estate and lease accounting.
The company also has offices in Frankfurt, Singapore, Florida and Pakistan.
Varjavandi said the company name is also his mother’s name.
He said IMNAT Software, founded in 2011, has a core product, InfoSite, which is a leading edge corporate real estate management software designed to centralize and manage corporate real estate accounts.
The platform features databased reporting and dashboards, streamlines corporate lease operations and manages data for leases, taxation, payments and rent rolls.
“When we talked to our customers and looked at the market, what we found that was interesting is that the real estate software industry hasn’t really evolved,” said Varjavandi. “They’re still using very old technology and it’s very costly to implement.
“Even if they’re on the cloud, they’re really not what we call a native cloud application.
“We saw huge opportunity in that area. For us to enter that market, we had a choice of either building the whole real estate functionality, which is the operation day-to-day activity of maintaining your real estate.
“Or we had to acquire a company that already had a customer base, they already had the expertise and they could use their expertise and that’s what happened. We saw this made-in-Montreal company.”
IMNAT has some major clients
Nakisa became familiar with IMNAT because the companies share some of the same clients.
IMNAT’s customer base include large private corporations such as Dollarama, Transcontinental and Lowe’s Canada, as well as some of the largest public government institutions in Canada.
Nakisa and IMNAT will combine their technology and networks. They will also combine their company-level data to generate a more accurate financial planning repository of information for trends and projections.
Varjavandi said InfoSite will be integrated into Nakisa’s product line and branded under the Nakisa umbrella. In January, IMNAT’s team, including CEO and co-owner Alexis Dénommée-Godin and co-owner Jean-François Bechard, will join Nakisa.
“I’m extremely proud of the quality software our team has built over the years and it’s an honour to be recognized and chosen by an established lease accounting brand that serves Fortune 500 companies around the world,” said Dénommée-Godin in a statement announcing the sale.
“Joining Nakisa allows us to take our real estate expertise to the global market and fulfill a need that has a tangible impact on both businesses and people.”
Unify divergent software products
Varjavandi said Nakisa serves more than 900 enterprise customers and over one million subscribers in 24 industries. Its client base includes a number of different industries, including retail, pharmaceutical and airlines. It has users in over 120 countries and supports 18 languages.
He said the acquisition of IMNAT presents a huge opportunity for Nakisa to both better serve existing customers and attract new ones.
“We are seeing companies having multiple software and we think we can actually unify the whole leasing, both for accounting and operations side, under one umbrella,” Varjavandi said. “From our perspective, any kind of asset you have we can provide an end-to-end solution.
“On the real estate side, we have a few customers who are interested in expanding on that to things like facility management and project management. Those are areas we’re also working with them. The beauty of the customers that we have, because these are very large customers, they’re actually willing to engage with us . . .
“From a customer perspective, the whole implementation and management is already done for them because it falls on the same platform.”
Yes, we have seen the mother of all V-shaped recoveries. The fact that the market recovered was not a big surprise. The speed at which it recovered was a surprise. I think that the number one fact though, of course, when people try to figure this out, will point to pent up demand and extremely low interest rates, which is true. However, there is much more to it. I think that if you look at qualification rates, at 4.79%, for variable and fixed-term rates, they are in fact higher from a qualification perspective when they were in 2008. And back then, this activity went down. In fact, this has been the most housing-market-friendly recession ever. Okay, so it’s not just about the industry. It’s about the composition of the damage in the labour market.
Explain how the labour market activity has impacted the market.
The vast majority, almost 100%, of all jobs lost during this recession were low wage occupations. Many of them are renters and are not players in the resale market. Second, is that it means that a very large segment of households was untouched by this crisis, financially speaking, their job is there, their income is there. In fact, many of them are sitting on extremely high levels of excess cash. And the interest rates are in the basement. That’s the opportunity that they were looking for. So the asymmetrical distribution of development in the labour market is the secret behind the success of the housing market today.
I think most of the most of the improvement was, of course, in the low-rise segment of the market. It makes sense because the nature of the crisis means that a lot of people want to move to detached houses. We are seeing a situation in which there is a positive correlation between the inflation rate in housing and the price of housing. The fact that detached prices are rising is a real nightmare, if you wish, for mover-uppers, because the price of the house that you want is rising faster than their own house. The gap is widening. So this is a reflection of people wanting to live in bigger houses and therefore they also move to outside the 416.
And do you see this trend continuing for the long-term?
I believe that that will continue to be the case for the next six months or so especially during the winter. The housing market in general, during the winter, will weaken alongside the economy as a whole as we have a second wave combined with the flu season confidence will go down. So that’s clearly something that we expect, and that will impact the housing market. I think that the 416 condo space will feel most of the pain because of the fact that we have a lot of supply coming in and demand is slowing. Having said that, I think that as we reach the other side of this crisis, the later the second half of 2021 we’re going to see a situation in which people start realizing the rental space in downtown Toronto is a bargain and you will see demand returning In between I see some adjustment in supply and some developers that basically front load and that activity will not be there during the winter. So the net result of some reduced supply in the second half of 2021 and marginal improvements in demand, we see some improvement in this market as well. But in between, we have to go through the winter.
And do you see the exodus to the suburbs trend continuing?
That trend started way before the crisis, as we all know, this is not new. Every crisis is a trend accelerator. And this crisis is no different in the sense that it accelerated this trend. Will we continue this trend? Absolutely not. When we are on the other side of this crisis, people will rethink this approach, it will continue, but not at the current rate. So again, when you’re in a situation, you have a tendency to exaggerate the long-term implications of that situation and we are in a situation. So people look at the people fleeing from downtown as a sign of a long-term trend. That’s not the case. I think that people will go back to downtown and the trend will continue but at a much slower pace than we’re seeing now.
What is your advice in terms of navigating this volatile market? Is it better to wait it out?
Well, I think that if you are in the market for a quick investment, then you can wait. For the long term, I think that the winter will provide some good entry positions given the relatively soft nature of the market. I think that the spring will be relatively strong.
And when the vaccine rolls out the timing, what will that do in terms of the market and the economy in general?
That’s one of the reasons why I believe that the economy will be very strong in the second half of the year, especially in the summer and into October, November when the vaccine will be widely available. That’s one of the reasons why I’m so optimistic about the second half of the year, when the economy I believe will rise by four, five, six percent including some nice improvement in the housing market.
Is now actually the best time in terms of buying a condo downtown?
I think that the market is soft and will probably get softer. The next few months will be actually if you have a long term horizon, the next few months will be a good opportunity absolutely.
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.