ACTIVITY
REPORT
AND SOCIAL RESPONSIBILITY REPORT
HEAD OFFICE
CENTRE CDP CAPITAL
1001 Square-Victoria Street
Montréal, Québec
H2Z 2B1
514 287-1852
1 888 599-IMMO
ACTIVITY REPORT AND SOCIAL RESPONSIBILITY REPORT
CANADIAN OFFICES
4, Place Ville Marie
Suite 600
Montréal, Québec
H3B 2E7
514 861-9393
2010
1175-324 8th Avenue SW
Calgary, Alberta
T2P 2Z2
403 539-2229
EUROPE
SITQ SAS
30, avenue George V
75008 Paris, France
(33) 1 56 69 25 30
SITQ PATRIMONIAL S.A.
125, avenue Louise
Bruxelles, Belgique 1050
(32) 2 644-4165
ASIA
SITQ INDIA PRIVATE LIMITED
D18, First Floor
Defence Colony
New Delhi 110 024
India
(91) 11 4602 7344
SITQ MAURITIUS ADVISORY
SERVICES
IFS Court
28, Cybercity
Ebene, Mauritius
(230) 467 3000
EUROSITQ FINANCES S.A.
25A, boulevard Royal
L-2449 Luxembourg
Luxembourg
(352) 27 62 06 93 41
La Défense, Paris
Published by Communications, Public Affairs and Marketing
Senior Vice Presidence – Human Resources and Shared Services
Writers: Sarah Marchand and Gary Lawrence
English translation: Shonda Secord
Graphic design and production: LXB Communication Marketing
Printing: L’Empreinte
© Copyright SITQ, 2011.
ISSN 1492-3041 (Activity report and Social responsibility report)
This document is also available online at sitq.com.
Le document est aussi disponible en français.
SITQ.COM
2010
To obtain additional copies or share your comments regarding this document, please
contact us at info@sitq.com.
BOARD OF DIRECTORS AND
MANAGEMENT TEAM
TABLE OF CONTENTS
Message from the President & CEO and Chairman of the Board
Financial profile
Office
/08
/06
Hotels, apartments and retirement housing
/26
Social responsibility report /30
Economy and governance /32
Employees /36
Environment /40
Community and knowledge /46
Tenants /50
Awards and certifications /54
Report context and parameters /58
/02
/18
EXECUTIVE
OFFICERS
Real estate investment funds
Board of Directors and management team
1
2
1. William R.C. Tresham
President and Chief Executive Officer
2. Adam Adamakakis
Executive Vice President, Eastern Region, Canada/U.S
3. Méka Brunel
Executive Vice President, Europe
/60
4. Michel Cyr
Senior Vice President, Development
3
PROFILE
4
Since 1984, SITQ has upheld a tradition of excellence that has made it a leader
in the North American and Western European real estate industries. Founded
by the Caisse de dépôt et placement du Québec with $9 million in invested
capital, SITQ today holds a $17.6-billion portfolio. Assets include prestigious
office properties, business parks, hotels, apartment buildings and retirement
residences in major cities in Canada, the United States, France, the United
Kingdom and Germany, as well as interests in several real estate funds that
invest in various markets around the world.
5. Denis Epoh
Senior Vice President, Investments
6. Rita-Rose Gagné
Senior Vice President and General Counsel
7. Pierre Lefebvre
Senior Vice President, Human Resources and Shared Services
8. Marc Lemaire
Senior Vice President, Real Estate Investment Funds and Financing
Backed by its expert team of 432 employees, the Company owes its success to
its solid investment and asset management know-how, its proven insight into
the real estate development sector and the rigour and quality of its property
management.
5
SITQ’s Office Division draws strength and stability from its shareholders, namely,
the Caisse de dépôt et placement du Québec (which owns a 90.6% interest), the
Desjardins Group Pension Plan, Alcan (Canada) Master Trust, the Association de
bienfaisance et de retraite des policiers et policières de la Ville de Montréal, the
Fonds commun de placement des régimes de retraite de l’Université Laval, the
Régime de retraite de la Société de transport (1992) and the Régime de retraite
de la Société de transport de Montréal (Syndicat de transport de Montréal-CSN).
The Hotels, Apartments and Retirement Housing Division and the Real Estate
Investment Funds Division are wholly owned by the Caisse.
6
9. Arthur Lloyd
Executive Vice President, Western Region, Canada/U.S.
10. Louiselle Paquin
Chief Financial Officer
11. Tony Roy
Vice President, Portfolio Management
7
8
9
10
SITQ has its head office at the Centre CDP Capital in Montréal and two business
offices in Calgary and Paris. It enjoys a Canada-wide presence through its
interest in Bentall Kennedy. SITQ also has offices in Québec City (Canada),
Brussels (Belgium), Luxembourg, New Delhi (India) and Ebene (Mauritius).
11
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SITQ / ACTIVITY REPORT AND
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Eighth Avenue Place, Calgary
EFFICIENCY
VALUES
MISSION
SITQ’s main focus is to meet the expectations of:
INNOVATION
• shareholders, by offering them an organization, resources and products of
top quality designed for developing and managing real estate vehicles that are
competitive, diversified and profitable
INTEGRITY
QUALITY
OF SERVICE
• tenants and occupants of its properties, by offering them workplaces that
are conducive to the growth of their business and choice living and lodging
environments
SOCIAL
RESPONSIBILITY
TEAMWORK
• employees, by providing them with a stimulating, healthy work environment
and rewarding professional challenges.
VISION
FINANCIAL
HIGHLIGHTS
OFFICE
/ IN MILLIONS OF DOLLARS /
2010
2009
HOTELS, APARTMENTS, RETIREMENT
HOUSING/REAL ESTATE
INVESTMENT FUNDS
/ IN MILLIONS OF DOLLARS /
Cash flow from operations
248
Cash flow from operations
262
7
-1
Total assets (fair market value)
11,272
11,861
Total assets (fair market value)
9,977
11,099
Acquisitions
59
Acquisitions
10
Disposals
189
367
Capital investment in the portfolio and development
207
213
Current rate of return
5.1%
5.1%
Overall yield
14.1%
-13.2%
313
936
Disposals
247
1,317
Capital investment in the portfolio and development
70
137
Current rate of return
0.2%
0.0 %
Overall yield
2.3%
-13.0%
/01
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
MESSAGE FROM
THE PRESIDENT & CEO AND
CHAIRMAN OF THE BOARD
DANIEL FOURNIER
Chairman of the Board
WILLIAM R.C.
TRESHAM
President & CEO
STRATEGIZING, REGIONALIZING AND CAPITALIZING
ON OUR GREATEST STRENGTH:
OUR PEOPLE
Like last year, 2010 was a time of transition for SITQ. We concentrated on
strategy-building, an approach that has already delivered results. Accordingly,
we stepped up our efforts to decentralize our corporate structure and leveraged
the expertise of our people to create independently operating regional teams.
In addition to the European team overseen by Méka Brunel that was set up in
Paris a few years ago, SITQ now has two new groups in place: one covering
the Western Canada/U.S. market, led by Arthur Lloyd and based in Calgary,
and one for the Eastern Canada/U.S. market, under the direction of Adam
Adamakakis, who works out of our Montréal office. Under this new structure,
the three teams are each responsible for investment, asset management,
leasing and operations within their respective regions. Their efforts are
supported by our experts at the SITQ head office, whose responsibilities also
include investment strategy and policy, the monitoring of regional operations
and corporate governance, as well as various shared services.
Moreover, we revised our business model in order to resharpen our focus on
our core specialties. Our approach will be similar to the one that has proven
fruitful in Montréal in recent years: we will strive to optimize our presence in
the business districts of some of North America’s and Europe’s biggest cities –
Toronto, Calgary, Vancouver, Seattle, New York, Boston, Washington, D.C.,
02/
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
Paris and London – by acquiring top-quality office buildings through long-term
investment deals.
Given the sluggish pace of economic recovery, we remained very strict in the
application of our strategy in 2010, guided by two watchwords: patience and
prudence. We therefore minimized our investments in real estate development,
maximized our operating revenue by finding tenants for vacant space and
renewing existing leases and tapped into new sources of liquidity through
several timely dispositions and beneficial financing arrangements. We also
succeeded in lowering the Company’s debt ratio by a significant margin.
This approach, combined with reduced capitalization rates that buoyed property
values within our portfolios, enabled us to post an overall return of 14.1% in
the Office sector in 2010 and 2.3% in the Hotels, Apartments and Retirement
Housing/Investment Funds sector. Therefore, despite the recent recession,
SITQ has continued to generate excellent medium- and long-term returns for
its shareholders, to the tune of 7.1% over a 5-year horizon and 10.3% over a
10-year horizon for the Office portfolio, and -3.4% over 5 years and 11.8%
over 10 years for the Hotels, Apartments and Retirement Housing/Investment
Funds porfolio.
MESSAGE FROM THE PRESIDENT & CEO
AND CHAIRMAN OF THE BOARD
SYSTEMATIC, DISCIPLINED
APPLICATION OF STRATEGIES
With the increased property values that were reported in many of our real estate markets – the office and hotel
sectors in particular, we took advantage of several interesting opportunities to sell assets that had achieved their full
potential or that no longer met our investment criteria. We nevertheless limited our disposition activity, as we believe
that values will continue to trend upward in 2011.
Our Office teams leased out a total of 4.2 million square feet during the year (including 0.8 million square feet for
the Eighth Avenue Place development project), oftentimes in difficult markets. Special acknowledgement goes out
to those involved in leasing the first tower of Eighth Avenue Place, the construction of which recently wrapped up in
downtown Calgary.
FORWARD-LOOKING LEADERSHIP AND INNOVATIVE
SUSTAINABILITY INITIATIVES
In 2010, our environmental and sustainable development priorities continued to
resonate through every aspect of our real estate management and development
activities. During the year, in addition to having four LEED-certified properties
in our portfolio, our Eighth Avenue Place project became the first Canadian
building to be pre-certified LEED Platinum. We also threw our support behind
a major sustainability award aimed at France’s real estate sector. These
initiatives clearly attest to our commitment to playing on ongoing leadership
role in our industry in matters of sustainable development.
Our social responsibility report also took on an important new dimension this year, as we decided to align
our reporting standards with those of the world-renowned Global Reporting Initiative. As a result, for the
first time, this report features a comprehensive view of the environmental performance of our portfolio
in Canada, the U.S. and Europe, along with figures on greenhouse gas emissions. This step forward
will enable us to track the progress of our sustainable development programs, set measurable goals for
reducing the environmental impact of our operations as part of our new sustainability policy and be better
poised to address the needs of our clients, tenants, partners and other stakeholders.
/03
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
MESSAGE FROM THE PRESIDENT & CEO
AND CHAIRMAN OF THE BOARD
ONGOING
REPOSITIONING
EFFORTS IN 2011
As a result of the rigorous application of our investment strategy, a few well-timed sales and refinancing
deals and our lower debt ratio, SITQ is in an excellent position to face the future. We have sufficient cash
reserves at our disposal to take advantage of promising business opportunities as they arise in markets
where we hope to expand our presence.
In the year ahead, however, we feel that acquisition opportunities will be few and far between, although
somewhat less scarce than they have been in the past two years. We are nevertheless ready to act on
the ones that are consistent with our investment criteria and business goals. We also plan to sell select
non-strategic assets, especially in the hotel sector, as well as a few office buildings in markets where our
presence is minimal. Lastly, we anticipate reducing our holdings in certain real estate funds.
ONE OF THE BEST TEAMS
IN THE BUSINESS
Without a doubt, SITQ’s biggest strength lies in the calibre of our people. We are extremely fortunate to
have such highly qualified professionals in our corner. Their knowledge and know-how are matched only
by their drive and determination, even when times get tough. Without their remarkable dedication, we
would never be able to meet our objectives. In 2010, not only did we achieve what we set out to achieve,
we did so under rather challenging market conditions. We are therefore tremendously grateful to all of our
teams at SITQ for their outstanding work.
We extend our deepest appreciation to our shareholders for their ongoing trust, as well as the members of
the Board of Directors for their support, which is so crucial to our success. During the year, the Board bid
adieu to outgoing chairman René Tremblay and directors Ghislain Parent and Louis Monette and welcomed
its newest member, Mario D. Morroni. We would also like to thank Fernand Perreault, who agreed to share
his invaluable expertise with us in the months after he left the Board. Finally, we acknowledge the many
contributions over the years of Paul Campbell, who stepped down as President and CEO of SITQ in 2010.
William R.C. Tresham
PRESIDENT AND CHIEF EXECUTIVE OFFICER
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SITQ / ACTIVITY REPORT AND
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Daniel Fournier
CHAIRMAN OF THE BOARD
MESSAGE FROM THE PRESIDENT & CEO
AND CHAIRMAN OF THE BOARD
Centre CDP Capital, Montréal
/05
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
FINANCIAL
PROFILE
Market value
2010
2009
2008
2007
2006
11,272
11,861
15,328
13,604
10,603
9,462
9,425
11,865
11,937
9,599
326
252
327
431
660
Long-term debt
5,193
6,230
7,454
5,612
4,549
Shareholders’ equity in the Company
5,587
4,897
5,640
6,633
4,970
As at December 31
Total assets
Real estate assets
Real estate investment funds
Immobilizations
59
10
244
1,615
3,356
Disposals
189
367
1,197
878
1,281
Capital investment in the portfolio and
development
207
213
305
891
234
5.1%
5.1%
4.2%
5.0%
6.2%
14.1%
-13.2%
-15.0%
25.5%
33.4%
2010
2009
2008
2007
2006
980
1,052
1,039
1,075
893
516
560
537
502
403
248
262
283
269
233
Acquisitions
(in millions of dollars, except for percentages)
OFFICE
Overall yield (current rate of return plus
capital appreciation yield)*
Fiscal year
As at December 31
Real estate income
Cash flow from operations
(before taxes and interest)
Cash flow from operations
(after taxes and interest)
PORTFOLIO BREAKDOWN
BY REGION
14%
2010
(Dec. 31)
Québec
33%
19%
Rest of Canada
United States
34%
After taxes and interest.
*
06/
SITQ / ACTIVITY REPORT AND
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Europe
8.6
8.1
6.6
2010
5.8
6.6
2009 2008 2007 2006
(in millions of dollars)
Current rate of return (cash flow from
operations on shareholders’ equity at
market value)*
OVERALL VACANCY RATE
FOR OFFICE PROPERTIES (%)
Yields
FINANCIAL PROFILE
Market value
2010
2009
2008
2007
2006
2005
Total assets
9,977
11,099
10,868
10,239
6,741
4,794
Real estate assets
4,254
4,675
5,790
5,298
2,652
1,346
Real estate investment funds , shares and
financing
3,572
3,477
4,282
3,587
3,222
2,544
Long-term debt
4,784
5,938
5,727
3,725
2,017
1,383
Shareholders’ equity in the Company
4,735
4,630
3,931
5,307
3,929
2,874
936
313
2,316
4,196
1,948
2,189
1,317
247
758
1,361
928
2,280
70
137
286
102
90
25
Current rate of return (cash flow from
operations on shareholders’ equity at
market value)*
0.2%
0.0%
1.7%
2.5%
2.9%
1.1 %
Overall yield (current rate of return plus
capital appreciation yield)*
2.3%
-13.0%
-35.3%
14.3%
27.9%
70.2 %
2010
2009
2008
2007
2006
2005
748
816
1,026
872
569
370
252
246
352
300
161
112
7
-1
87
103
81
22
As at December 31
Immobilizations
Acquisitions/contributions
Disposals/distributions
Capital investment in the portfolio and
development
(in millions of dollars, except for percentages)
HOTELS, APARTMENTS, RETIREMENT HOUSING
AND REAL ESTATE INVESTMENT FUNDS
Fiscal year
As at December 31
Real estate income
Cash flow from operations
(before taxes and interest)
Cash flow from operations
(after taxes and interest)
(in millions of dollars)
Yields
PORTFOLIO BREAKDOWN
BY REGION
12%
6%
4%
17 %
2010
(Dec. 31)
Québec
Rest of Canada
20 %
United States
41%
Europe
Asia
Emerging countries
After taxes and interest.
*
/07
SITQ / ACTIVITY REPORT AND
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Steeles Technology Campus, Toronto
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SITQ / ACTIVITY REPORT AND
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OFFICE
OUTSTANDING
ACHIEVEMENTS
The recession continued to loom over SITQ’s key office
property markets at the beginning of 2010. However,
the economy in many countries stabilized as the year
progressed, and the first tentative signs of recovery
started to emerge in the second half of the year. Given
the uncertain economic climate, investment activity
was slow, albeit slightly more vigorous than it had
been in 2009. By and large, investors trained their
focus on high-quality, well-leased assets.
In this context, SITQ’s teams continued to concentrate
on asset management and leasing operations. This
strategy paid off, in that more than 3.4 million
square feet (318,000 square metres) of office
space was leased out in 2010 (excluding the Eighth
Avenue Place development project), including nearly
1.5 million square feet (141,000 square metres)
in new leases. Nevertheless, considering it was a
challenging year for many markets, the portfolio-wide
vacancy rate rose from 6.6% to 8.1%.
Furthermore, capitalization rates for quality assets
eased off in some markets, causing property values in
the Office portfolio to trend upward, which in turn had
a positive effect on the Company’s overall performance.
1515 Broadway, New York
OFFICE PORTFOLIO
• 121 owned and co-owned properties
• $9.6 billion
• 37.4 million square feet (3.5 million square metres)
• Assets in major cities in Canada, the United States, France, Germany
and the United Kingdom
• Main partners: SL Green, Tishman Speyer, TIAA-CREF, VEF, USAA, the Caisse des Dépôts
et Consignations, GIC of Singapore, GWL Realty Advisors, AIMCo, bcIMC
/09
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
OFFICE
CANADA:
STEADY LEVEL OF ACTIVITY,
ESPECIALLY IN CALGARY
In Canada, the Calgary market was particularly active in 2010. Although the
outlook at the beginning of the year was somewhat gloomy, conditions had
improved by the spring – after it was announced that oil royalties would be
reduced and petroleum prices began to soar. As a result, occupancy rates
in downtown Calgary topped the 90% mark. In addition, despite experts’
predictions that the vacancy rate would shoot up to 20% following the delivery
of two large-scale projects at the end of 2011, projections for 2012 have been
scaled back to the 12% to 14% range.
SITQ teams took advantage of the favourable market conditions to lease out
more than 0.8 million square feet (74,000 square metres) of office space in
Calgary alone. Several major renewal deals were signed, including one with
Canadian Natural Resources at the Home Oil Tower (275,000 square feet –
26,000 square metres) and EnerPlus at the Dome Tower (205,000 square
feet – 19,000 square metres).
In addition, 758,000 square feet (70,400 square metres) was leased in the
East Tower of Eighth Avenue Place, one of two SITQ development projects
in downtown Calgary. This represents 69% of the total leasable area of the
1.1-million-square-foot (120,000 square metres), 49-storey office building.
Future occupants include Bonavista Energy Corporation, Direct Energy,
Burnett Duckworth & Palmer LLP, Precision Drilling Corporation, PetroBakken
Energy, GE Canada and BMO Nesbitt Burns. The project, which was initially
pre-certified LEED-CS Gold, was upgraded to Platinum status in 2010. The
first tenants moved in in early 2011.
Eighth Avenue Place, phase 2, Calgary
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SITQ / ACTIVITY REPORT AND
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Furthermore, the redevelopment of The CORE Shopping Centre wrapped up at
the beginning of 2011. Despite its high degree of complexity, the project was
delivered on time and on budget and has proven to be a great success. Several
tenants signed on during the year, bringing the occupancy rate to 93% as at
December 31, 2010. The CORE boasts an upscale, fashion-oriented retail mix
headlined by such big names as Holt Renfrew, Brooks Brothers, Harry Rosen
and H&M.
Meanwhile, the market in downtown Toronto was very vigorous during the year.
Despite the construction of new properties in recent years, the vacancy rate
has not climbed any higher than 6%, in contrast to analysts’ warnings of its
skyrocketing to 20%. Outside the city centre, however, the situation was more
of a challenge. SITQ teams nevertheless concluded several transactions for York
Mills Centre, including the renewal of NewJ Systems’ lease for 70,000 square
feet (6,500 square metres), up from its previous 26,000 square feet
(2,400 square metres). Also at York Mills Centre, Varicent Software
Incorporated, which had been subletting 10,000 square feet (930 square
metres) from Sunoco, signed a lease directly with SITQ for a total of
25,000 square feet (2,300 square metres).
Lastly, in Montréal, market conditions in the downtown core remained
stable throughout the year. SITQ teams closed several leasing transactions,
comprising a total of 114,000 square feet (10,600 square metres) in new
leases – including those signed by the Ordre des comptables en management
accrédités du Québec at the World Trade Centre Montréal and the expansion
of the Business Development Bank of Canada offices at Place Ville Marie.
Renewals during the year accounted for 211,000 square feet (19,600 square
metres). Among the key transactions finalized in this regard was the early lease
renewal and expansion of the premises occupied by Electronic Arts Montréal.
OFFICE
UNITED STATES:
EXCELLENT LEASING
VOLUME IN TOUGH
MARKETS
SITQ’s main markets in the United States are New York City, Washington, D.C.,
Boston and Seattle. Because economic recovery has been fragile and faltering
in most of the country, many businesses have put off their decisions to move
or expand and, in some cases, have even opted to downsize their facilities.
Washington, D.C., has proven to be the most resilient market in this respect, chiefly
due to growth in the federal government and the formation of new administrative
agencies, which have led to job creation and greater demand for office space. SITQ
has taken advantage of this trend, adding the new White House service centre to
its tenant roster. In total, some 539,000 square feet (50,100 square metres) was
leased out by SITQ in this market in 2010.
In Seattle, where the situation continued to be very difficult, with a vacancy
rate nearing 20%, SITQ renewed leases for two buildings wholly occupied by
T-Mobile at the Newport Corporate Center, in the suburbs of the city, for a total of
300,000 square feet (28,000 square metres). The Company also finalized the
construction of Two Newport, also occupied by T-Mobile.
Lastly, several transactions were concluded in some of the country’s worsthit secondary markets. In Denver, for example, SITQ signed new leases for
126,000 square feet (11,700 square metres), which included an expansion of the
space occupied by the Colorado Department of Public Health and the Environment.
In Dallas, leasing teams finalized transactions for 100,000 square feet
(9,300 square metres) and, in Tampa, where the recession was especially severe,
57,000 square feet (5,300 square metres) in new leases were signed, representing
half of the absorption rate in this market in 2010.
388–390 Greenwich Street, New York
/11
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
OFFICE
EUROPE:
LEASING, REDEVELOPMENT
AND REFINANCING
For the European markets where SITQ is present – Paris, London, Frankfurt,
Düsseldorf and Munich – the year can be divided into two parts. The first part
was marked by a sluggish performance, similar to that of 2009. Major property
owners and managers therefore turned their attention to asset management.
The second half, however, was characterized by a rebound, driven primarily
by a succession of corporate mergers and restructuring operations. Leasing
volume enjoyed healthy growth during this period, particularly in Paris, where
it surpassed 23 million square feet (2.2 million square metres). The situation
nevertheless remains volatile, as job creation is still anemic.
During the course of the year, SITQ renegotiated the lease held by Areva, at
33 Lafayette, in Paris’s 9th arrondissement. In addition, the European team
initiated a project to redevelop and promote Tour Prisma, in the city’s La Défense
district, following the departure of its sole tenant, to which SITQ proposed Tour
Diamant in 2009, in order to better accommodate its needs.
Also in Paris, the Company refinanced 33 Lafayette and 42 de Friedland, as well
as Tour Prisma and Tour Pacific, for a total of €400 million. This represented the
biggest portfolio refinancing transaction in 2010.
IBC Complex, Frankfurt
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OFFICE
CHALLENGES FOR 2011:
LEASING,
REPRIORITIZING
AND SEEKING
OUT BUSINESS
OPPORTUNITIES
A number of leasing-related challenges lie in store for SITQ in the year ahead, particularly in Toronto,
several U.S. cities, Paris, Frankfurt and Düsseldorf. In addition, the Company will be readjusting its
investment portfolio to concentrate on high-quality properties in its key target markets. It will therefore
be on the lookout for business opportunities that enable it to sell certain properties to capitalize on their
appreciation in value and take advantage of select acquisition opportunities.
SITQ’s goal is to readjust its investment portfolio
to concentrate on high-quality properties in key
target markets.
From a development perspective, SITQ’s teams will
focus on new, prime locations in its target markets
where it can build high-quality properties in the
coming years. There are four pending projects that
are ready to be green-lighted in North America as
soon as the circumstances are amenable: 45 Bay
Street, in downtown Toronto, for which pre-leasing
is slated to begin in 2011; 900 De Maisonneuve
Ouest, in the heart of Montréal; Phase III of The
Summit, in Seattle; and the second tower of Eighth
Avenue Place, in Calgary, the preliminary design
and infrastructure of which are already complete.
Finally, SITQ will be looking to step up its
involvement in the management and leasing of
its third party–managed properties. It hopes to
make the most of its expertise in these fields to
forge closer ties with its tenants and clients in all
of its markets, so that it can be more responsive
to their needs and better poised to act on business
opportunities as they arise.
900 De Maisonneuve Ouest, Montréal
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SITQ / ACTIVITY REPORT AND
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OFFICE
INTERVIEW
SITQ’s leasing teams are widely known and respected not only
for their expertise but also for their drive and determination
and the creative solutions they use to find the right tenants
for large blocks of space. They develop detailed plans and
high-impact marketing and promotional strategies to connect
with organizations that promise to be a good fit for their
properties. This often requires outside-the-box thinking, as
was the case with Tour Prisma in the La Défense district of
Paris, in 2010. Arnaud Malbos, Vice President, Investments,
ARNAUD MALBOS
Vice President,
Investments, Europe
Europe, describes the initiative spearheaded by the European
team and carried out in association with several of their head
office colleagues.
HOW DID YOU GO ABOUT FINDING
POTENTIAL TENANTS FOR
TOUR PRISMA?
At the end of 2009, SITQ’s asset management teams sold Tour Diamant to
the company that had until then been the sole occupant of Tour Prisma. This
transaction enabled us to accommodate the needs of this high-profile tenant
while still leaving us enough time to come up with a suitable action plan to
redevelop and lease the 260,000-square-foot (24,000 square metre) property,
which was slated to be vacated by the end of September 2010.
By early 2010, in conjunction with head office, we had issued a detailed
request for proposals and had hired engineers, architects and commercial real
estate brokers to consult on the project. With the help of these experts, we
developed a plan to strategically position Tour Prisma in the very competitive
La Défense market. The idea was to optimize the financial performance of
the property while adapting it to the expectations of high-profile tenants. We
analyzed and ran the numbers on a wide range of scenarios, ranging from a
basic, no-frills renovation to a full-out reconfiguration. We then assessed each
option and went with the one that seemed to be the most realistic given the
context and the tight timeframes we had to deal with.
The concrete improvements we decided on – among them a more contemporary
décor, upgraded amenities, enhanced environmental performance and more
energy- and water-efficient systems – will make the property more competitive
in its market.
One of the suggested office layouts in the showroom
14/
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
OFFICE
WHAT TOOLS DID YOU USE
TO MARKET THE
PROPERTY?
Working with our Communications, Public Affairs and Marketing Department at head office, we came up
with a comprehensive marketing strategy to promote Tour Prisma, complete with a logo, a brand image
and a wide range of marketing tools, which include a brochure, PowerPoint presentation and website
(www.tourprisma.com).
We also built a spacious on-site showroom to highlight the many possibilities in terms of layout – from
open-concept to cubicle-based – and provide information on the building particulars. The showroom also
features various drawings and renderings to illustrate what the final product could look like, with special
emphasis on elements like the lobby and service establishments.
Basically, everything has been developed to make a distinct and immediate impression on visitors, even if
they only spend a few minutes in the showroom. Our goal is to guide them with respect to the overall look
and feel of the premises, while still making it clear that the project is extremely flexible and customizable
to their specific needs.
Tour Prisma, Paris
WHAT TYPE OF OCCUPANTS ARE YOU
TARGETING, AND HOW DO YOU SEEK OUT
COMPANIES THAT MATCH THIS
PROFILE?
Ideally, we would like to lease Tour Prisma out to a single organization, although we would also be open
to having one major tenant with a few complementary occupants.
In terms of reaching out to potential tenants, we’ve asked our brokers to get the word out about the
property, and they’ve put out feelers within their client networks. We are also holding on-site events to
attract corporate contacts, like the luncheon we had for 25 people in our showroom during the most
recent SIMI commercial real estate show in Paris. Once our redevelopment work is completed, we will be
holding a reception for a hundred or so key real estate decision-makers and other influential members of
the business community.
The showroom features a number of renderings designed to
give visitors a better idea of what the property will look like
once the redevelopment project is finished.
At the end of the day, we want to connect with potential tenants so we can give them a better idea – from
either a broad or a detailed perspective, depending on how much time they have – of what their future
office space could be. That is why we have developed these innovative promotional tools and created a
showroom that is designed to spark their imagination!
/15
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
OFFICE
Location Share (%)
World Trade Centre Montréal
Sun Life Building
Place Ville Marie
1000 De La Gauchetière Ouest
Centre CDP Capital
455 Saint-Antoine Ouest
(formerly Montreal Herald)
415 Saint-Antoine Ouest
(formerly Le Méco)
Édifice Mérici
505 Parc Technologique de Québec
Édifice de la Haute-Ville
Édifice Price
Steeles Technology Campus (4 buildings)
College Square I
College Square II
area
(sq. ft.)
(m2)
100
50
50
100
100
566,000
949,000
2,579,000
917,000
570,000
53,000
88,000
239,000
85,000
53,000
Montréal
100
82,000
8,000
Montréal
100
50,000
5,000
100
100
100
100
128,000
99,000
266,000
57,000
12,000
9,000
25,000
5,000
6,263,000
582,000
Québec
Québec
Québec
Québec
City
City
City
City
Toronto
Toronto
Toronto
45
100
100
271,000
264,000
537,000
25,000
25,000
50,000
Toronto
100
634,000
59,000
Mississauga
Mississauga
100
100
88,000
155,000
8,000
14,000
1,949,000
181,000
257,000
175,000
475,000
545,000
349,000
748,000
1,086,000
205,000
2,766,000
24,000
16,000
44,000
51,000
32,000
69,000
101,000
19,000
257,000
6,606,000
613,000
14,818,000
1,376,000
Total Ontario
Bentall Centre – Tower I
Bentall Centre – Tower II
Bentall Centre – Tower III
Bentall Centre - Tower IV
1075 West Georgia
Calgary Eaton Centre (TD Canada Trust)
TD Square (Home Tower and Dome Tower)
Holt Renfrew
Versacold portfolio (20 buildings)
area
Montréal
Montréal
Montréal
Montréal
Montréal
Total Québec
Cirvek – 150 Bloor
55 University
York Mills Centre
CANADA
Leasable Leasable
Vancouver
Vancouver
Vancouver
Vancouver
Vancouver
Calgary
Calgary
Calgary
mainly Western Canada
60
60
60
75
25
50
50
50
30
Total Western Canada
TOTAL CANADA
UNITED STATES
Atlanta Office
US Bank Center
Newport Corporate Center (6 buildings)
The Summit (2 buildings)
Cherry Creek Corporate Center
Campus at Cherry Creek (3 buildings)
Daltex (10 buildings)
Wachovia Center
388-390 Greenwich Street (2 buildings)
1515 Broadway
498 7th Avenue
1745 Broadway
One Boston Place
33 Arch Street
1919 Pennsylvania Avenue
1775 Pennsylvania Avenue
1730 Pennsylvania Avenue
1717 Pennsylvania Avenue
1747 Pennsylvania Avenue
1825 E Street (International Square)
1850 K Street (International Square)
1875 E Street (International Square)
2025 M Street
16/
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
Atlanta
Seattle
Bellevue
Bellevue
Denver
Denver
Dallas
Tampa
New York
New York
New York
New York
Boston
Boston
Washington, D.C.
Washington, D.C.
Washington, D.C.
Washington, D.C.
Washington, D.C.
Washington, D.C.
Washington, D.C.
Washington, D.C.
Washington, D.C.
85.6
50
100
100
100
100
100
49.99
49.4
45
49.9
43.13
49.75
48.5
14.83
30.78
30.78
30.78
30.78
30.78
30.78
30.78
14.83
366,000
944,000
1,060,000
524,000
238,000
356,000
816,000
385,000
2,635,000
1,628,000
861,000
637,000
789,000
603,000
263,000
151,000
244,000
199,000
159,000
374,000
425,000
283,000
183,000
34,000
88,000
98,000
49,000
22,000
33,000
76,000
36,000
245,000
151,000
80,000
59,000
73,000
56,000
24,000
14,000
23,000
19,000
15,000
35,000
40,000
26,000
17,000
OFFICE
Location Share (%)
900 19th Street (Presidential Plaza)
1255 23rd Street (Floyd D. Ackers
Building)
2550 M Street
1201 F Street
700 14th Street (Commercial National Bank)
Other buildings in the Tishman portfolio
(11 buildings)
The Renaissance Tower
Perimeter Center
Leasable
area
Leasable
area
(sq. ft.)
30.78
106,000
10,000
Washington, D.C.
30.78
313,000
29,000
Washington, D.C.
Washington, D.C.
Washington, D.C.
30.78
30.78
30.78
192,000
228,000
204,000
18,000
21,000
19,000
Virginia
30.78
2,125,000
197,000
Sacramento
Richmond
49
49
335,000
169,000
31,000
16,000
17,795,000
1,654,000
542,000
260,000
108,000
295,000
698,000
221,000
50,000
24,000
10,000
27,000
65,000
21,000
2,124,000
197,000
TOTAL UNITED STATES
Tour Pacific
Tour Prisma
42 de Friedland
33 Lafayette
Tour T1
B Building
Paris
Paris
Paris
Paris
Paris
Paris
FRANCE
42.01
42.01
42.01
42.01
100
100
TOTAL FRANCE
IBC Complex – Building A
IBC Complex – Building B
IBC Complex – Building C
Frankfurt
Frankfurt
Frankfurt
99.73
99.73
100
Sossenheim (Europark)
Frankfurt
Munich
Munich
Düsseldorf
Theresienhöhe (Theresie)
Kistlerhofstrasse (Tech Data)
ThyssenKrupp Trade Center
GERMANY
90,000
387,000
383,000
8,000
36,000
36,000
100
377,000
35,000
100
100
100
632,000
277,000
372,000
59,000
26,000
34,000
2,518,000
234,000
TOTAL GERMANY
151 Buckingham Palace Road
UNITED KINGDOM
London
100
TOTAL UNITED KINGDOM
Total office portfolio
Eighth Avenue Place, Phase 1
194,000
18,000
14,818,000
17,795,000
4,836,000
1,376,000
1,654,000
449,000
37,449,000
3,479,000
Location Share (%)
Calgary
18,000
Leasable area
(sq. ft.)
TOTAL OFFICE PORTFOLIO
(investments of over $100 million)
194,000
Leasable area
Canada
United States
Europe
Main properties in
development
(m2)
Washington, D.C.
33.33
(m2)
Leasable
area
(sq. ft.)
1,100,000
Leasable
area
(m2)
102,000
/17
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
HOTELS, APARTMENTS AND
RETIREMENT HOUSING
Ritz Plaza, New York
18/
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
HOTELS, APARTMENTS AND
RETIREMENT HOUSING
A YEAR
CONDUCIVE TO
STRATEGIC THINKING
Signs of recovery began to emerge in the hotel,
apartment and retirement housing sector in 2010.
The hotel industry, which had been hit hard by the
recession, saw an upturn in occupancy and revPAR
rates in several markets after reaching a low in 2009.
This bodes well for a stronger market in the coming
months. In terms of apartment buildings in the United
States, there was notable improvement in some cities,
especially Manhattan, where SITQ has a significant
presence. Activity also picked up in the retirement
housing sector across the U.S.
Holiday Inn, Paris
HOTELS, APARTMENTS AND
RETIREMENT HOUSING
PORTFOLIO
• 95 owned and co-owned properties
• $4.2 billion
• Assets in Canada, the United States, Europe and the Caribbean
• Main partners: Westmont Hospitality Group, Starwood Capital Group, Stonehenge Partners
and Senior Resource Group
/19
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
HOTELS, APARTMENTS AND
RETIREMENT HOUSING
ANALYSIS,
TRANSITION
AND
INTEGRATION
OF ASSETS
Given the adverse investment climate and the still-recent integration of these
activities into SITQ’s operations, 2010 was primarily devoted to the ongoing
analysis of the assets in this portfolio. The Hotels, Apartments and Retirement
Housing team also strove to forge stronger ties with strategic partners in order
to become more actively involved in asset management decisions.
A new acquisition was nevertheless made during the course of the year, in
association with Stonehenge Partners. Located in the heart of Manhattan, on
the border of Chelsea and West Village, two of the city’s most sought-after
residential neighbourhoods, 555 6th Avenue is a 176-apartment property,
with 30,000 square feet (2,800 square metres) of commercial space and a
90-vehicle parking garage, for a grand total of 180,000 square feet (17,000
square metres). Major renovations, including the addition of an extra floor, are
being planned and will help deliver significant extra value.
One acquisition was made in 2010:
an apartment building in the heart
of Manhattan.
As for the hotels in the portfolio, a few renovation projects were initiated or
continued during the year to enhance the quality and optimize the value of
various properties.
Lastly, SITQ divested itself of its minority interest in the Red Roof Inn chain in
the U.S. It also sold its stake in several development projects in India, choosing
instead to focus its investments in key target markets in North America and
Europe where it has already established its presence.
20/
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
EXPERIENCED
PARTNERS
The properties in the Hotels, Apartments and Retirement Housing
portfolio are co-owned with a number of solid partners with proven
operational and management expertise, including:
• Westmont Hospitality Group, with which SITQ co-owns 53 hotels
operating under some 15 banners, among them Hilton, Crowne Plaza,
Holiday Inn and Fairmont
• Starwood Capital Group, a partner in five Westin-branded hotels and
one W Hotel
REFOCUSING AND
REPRIORITIZING
IN 2011
In 2011, the SITQ team will keep a close eye on these markets, especially the
hotel sector. As conditions become more favourable, it will deploy a strategy
aimed at selling certain hotel properties to capitalize on their appreciation in
value since their acquisition. It will also assess the possibility of renovating
select establishments in order to take advantage of their value-added potential.
And it will continue its strategic analysis of the apartment sector, with the goal
of developing an action plan for this aspect of its business.
• Stonehenge Partners, the co-owner of 17 apartment buildings in
Manhattan, representing a total of 2,544 dwellings
• Senior Resource Group, with which SITQ co-owns eight retirement
residences located in three U.S. states.
Westin Ottawa
HOTELS, APARTMENTS AND
RETIREMENT HOUSING
CANADA
Location
Share (%)
Units
Fairmont The Queen Elizabeth
Montréal
94.2
1,037
W Montréal
Montréal
51
152
Québec City
94.2
618
Hotels
Fairmont Le Château Frontenac
Fairmont Château Laurier
Ottawa
94.2
429
Westin Ottawa
Ottawa
48.5
496
Delta Toronto East
Toronto
94.2
366
Fairmont Royal York
Toronto
94.2
1,365
Westin Harbour Castle
Toronto
48.5
977
Hilton Toronto
Toronto
84.7
600
Hilton Toronto Airport Hotel and Suites
Toronto
84.7
419
Calgary
48.5
525
Edmonton
48.5
416
Westin Calgary
Westin Edmonton
Victoria
94.2
477
Fairmont Waterfront
Vancouver
94.2
489
Westin Bayshore
Vancouver
48.5
511
Fairmont Hotel Vancouver
Vancouver
94.2
556
Winnipeg
94.2
340
Fairmont Empress
Fairmont Winnipeg
Apartments
Jardins Mérici
Golden Gate 1 to 5
Hotels
100
103
North York
97.5
686
UNITED STATES
United States
19.1
17,966
Doubletree Berkeley Marina
California
41.5
378
Doubletree Sacramento
California
41.5
448
InTown Suites (138 properties)
California
41.5
258
Best Western High Point
North Carolina
41.5
252
Holiday Inn Raleigh Crabtree
North Carolina
41.5
176
Colorado
41.5
299
Doubletree Guest Suites Melbourne Beach
Florida
41.5
207
Hilton Melbourne Beach Oceanfront
Florida
41.5
200
Georgia
85.6
1,242
Idaho
41.5
303
Embassy Suites Detroit Southfield
Michigan
41.5
239
Doubletree Omaha Downtown
Nebraska
41.5
414
Crowne Plaza Columbus North
Ohio
41.5
300
Doubletree Modesto
Doubletree Colorado Springs World Arena
Hilton Atlanta
Doubletree Boise Riverside
Oregon
41.5
477
Washington
94.2
450
Doubletree San Antonio Airport
Texas
41.5
290
Doubletree Guest Suites Houston by the
Galleria
Texas
28.8
380
District of Columbia
94.2
415
Doubletree Portland
Fairmont Olympic Hotel
Fairmont Washington, D.C.
22/
Québec City
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
HOTELS, APARTMENTS
AND RETIREMENT HOUSING
UNITED STATES
Location
Share (%)
10 Downing Street
New York
47.5
114
20 Park Avenue
New York
47.5
100
41 Park Avenue
New York
47.5
113
167 East 82nd Street
New York
47.5
43
8 Gramercy Park
New York
47.5
55
141 East 33rd Street
New York
47.5
120
360 East 65th Street
New York
47.5
158
555 6th Avenue
New York
47.5
176
Stonehenge Village
New York
47.5
418
347-351 East 58th Street
New York
47.5
30
322-334 East 63rd Street
New York
47.5
90
The Olivia
New York
47.5
333
The Ritz Plaza
New York
60
479
108 West 15th Street
New York
50
55
6 West 107th Street
New York
50
21
210 West 89th Street
New York
70
151
Vinings Corner
Atlanta
47.5
360
Ashford Park
Atlanta
47.5
408
Apex
47.5
328
Matthews
47.5
212
Austin
47.5
192
Coppell
47.5
600
Plano
47.5
434
Apartments
Lake Cameron Apartments
Matthews Reserve
McNeil Ranch Apartments
St. Marin
Mission Gate
Units
City West
Orlando
47.5
300
Central Park
Orlando
47.5
360
Grand Reserve
Orlando
100
195
Retirement Housing
Los Angeles
47.5
239
Village at Ocotillo
Phoenix
47.5
120
Hawthorn Court
Phoenix
47.5
44
Village at Sherman Oaks
Portland
47.5
262
San Diego
47.5
343
Santa Barbara
47.5
363
Silver Springs
Tucson
47.5
107
Amber Lights
Tucson
47.5
120
SpringRidge at Charbonneau
La Vida Real
Maravilla
/23
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
HOTELS, APARTMENTS AND
RETIREMENT HOUSING
Hotels
Holiday Inn Express
Holiday Inn
Crowne Plaza
Location
Share (%)
Alicante
84.7
Units
120
Berlin City Centre
84.7
256
Cologne Muelheim
84.7
107
Cologne Troisdorf
84.7
110
Dortmund
84.7
107
Düsseldorf North
84.7
150
Frankfurt Airport
84.7
186
Frankfurt Messe
84.7
175
Munich Messe
84.7
120
Valencia-San Luis
84.7
125
Amsterdam
84.7
264
Munich City Centre
84.7
582
Vienna South
84.7
174
Amsterdam-Schiphol
84.7
242
Brussels Airport
84.7
315
Hamburg
84.7
285
Heidelberg
84.7
232
Paris Republique
84.7
328
Hôtel Jules
Paris
84.7
101
Hôtel Beauchamps
Paris
84.7
89
Holiday Inn Terminus Est
Paris
84.7
200
Mercure Terminus Nord
Paris
84.7
236
Hotels
Fairmont Royal Pavilion
24/
EUROPE
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
OTHERS
Location
Share (%)
Units
Barbados
84.7
75
HOTELS, APARTMENTS
AND RETIREMENT HOUSING
Fairmont Le Château Frontenac, Québec City
/25
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
REAL ESTATE
INVESTMENT FUNDS
Centre CDP Capital, Montréal
26/
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
REAL ESTATE INVESTMENT FUNDS
ANALYZING
CURRENT HOLDINGS
TO MAKE WELL-INFORMED
DECISIONS FOR THE FUTURE
In 2010, gradual improvements in the economic
environment and market conditions in most
countries around the world meant that investment
funds were more active. Although transaction
volumes did not bounce back to pre-recession
levels, they did experience a significant increase,
especially in the second half of the year. This was
reflected in their yields, most of which were in the
black as at December 31, 2010.
REAL ESTATE
INVESTMENT FUND
PORTFOLIO
• $3.5 billion
• North America, Europe, Asia and emerging markets
• Main partners: Lone Star, Blackstone, KingSett, Bentall,
Warburg Pincus, The Praedium Group, Maestro Group
/27
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
REAL ESTATE INVESTMENT FUNDS
DISTRIBUTIONS, CONTRIBUTIONS
AND CLOSER TIES WITH INVESTMENT
PARTNERS
As had been anticipated in 2009, a number of the funds in SITQ’s portfolio distributed capital gains to their
investors in 2010. This resulted in an extra $451 million in the Company’s cash flow. SITQ also disbursed
roughly $435 million to honour its commitments to several real estate investment funds.
SITQ will strive to establish a tighter-knit relationship
with the managers of the funds in which it holds a
major interest.
During the year, the SITQ team also took a more hands-on approach with its investments, particularly with
the funds in which it holds a major interest. The goal has been to establish a tighter-knit relationship with
the managers of these funds and gain a clearer understanding of their structures, the investments they make
and their underlying assets. Using this strategy, the team hopes to better assess the risk associated with
these holdings and integrate it more effectively into SITQ’s overall portfolio.
REDEFINING
THE PORTFOLIO
IN 2011
In 2011, the SITQ team will completely revamp the positioning of its real estate investment fund portfolio,
in order to concentrate on strategic funds that enable it to maximize the geographic diversification of its
overall assets and to access the markets where it does not wish to invest directly. SITQ will also focus on
top-notch fund managers known for their rigorous, disciplined approach. The overall proportion of this type of
investment within the portfolio will be reduced, given that it is intended as a complement to the Company’s
core focus, i.e., office properties.
28/
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
REAL ESTATE INVESTMENT FUNDS
Funds
Location
Lone Star Funds
Global
Blackstone Real Estate Partners
Global
Carlyle Realty Partners
North America
Praedium
United States
LF Strategic Real Estate Investment
United States
William Opportunity Fund
United States
LLFC Enhanced Fund I
United States
Maestro
Canada
MCAP Commercial LP
Canada
Bentall
Kingsett Real Estate Growth
Canada/United States
Canada
Colyzeo Investors
Western Europe
Chiswick Park Unit
United Kingdom
Gresham Property Partners
United Kingdom
Schroders Asian Property
Asia
Warburg Pincus
China
daVinci
Japan
India Property Fund
India
/29
SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
SOCIAL RESP
ONE OF OUR
VALUES
ECONOMY AND GOVERNANCE 32
EMPLOYEES 36
ENVIRONMENT 40
COMMUNITY AND KNOWLEDGE 46
TENANTS 50
AWARDS AND CERTIFICATIONS 54
PONSIBILITY:
R CORE
ECONOMY
AND GOVERNANCE
At SITQ, we feel it is vital to contribute to the economic prosperity of the communities where our properties
are located. And because our real estate portfolio is so far-reaching, the corresponding benefits to local
economies are manifold.
Our asset and property management operations are overseen by a team of 432 dedicated professionals
working in various markets around the world. In addition to our core group of over 400 employees in
Montréal, we have staff based in Calgary, France and India. The opposite page shows the breakdown of
our workforce by geographic region.
Our real estate management activities also make us a major buyer and employer in Québec. Our recurring
purchases, outsourcing agreements and service contracts alone amount to tens of thousands of dollars
and generate over 400 indirect jobs in sectors related to the management of our 10 office properties in
the province, as well as numerous professional services.
Elsewhere in the world, SITQ contributes in a meaningful and diversified way to the local economies of
the 15 cities where we own office properties, among them Boston, New York, Washington, D.C., Paris
and Frankfurt. To ensure the maintenance and management of our assets in these markets, we team up
with appraisers, maintenance professionals, taxation and audit consultants and a host of other providers.
SITQ IN QUÉBEC, IN TERMS OF
EMPLOYMENT AND PURCHASING
• Direct jobs: 401
• Payroll: $42.8 million
• Amount disbursed to suppliers in Québec: $100.1 million
• Indirect jobs (outsourced – office properties): 414
ENVIRONMENTALLY RESPONSIBLE PURCHASING
POLICIES
In all of our properties, we work closely with our suppliers to obtain the greenest possible local goods
and services, be it for our custodial operations, the treatment of the water in our air-conditioning and
heating systems or our construction projects. Because we set out the terms of our own purchasing
policies, we systematically prioritize providers that are committed to eco-friendly practices.
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ECONOMY
BREAKDOWN OF
SITQ EMPLOYEES
BY GEOGRAPHIC
LOCATION
QUÉBEC CITY
7
PARIS
18
MONTRÉAL
394
NEW DELHI
CALGARY
4
9
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ECONOMY
Efficient, transparent governance
In Québec and around the world, SITQ is well known and respected for its
responsibility- and transparency-oriented governance rules, structures and
practices. They are among the strictest and most comprehensive in the
industry, greatly exceeding regulatory requirements in this regard.
To ensure maximum protection for our shareholders, our Board of Directors
is backed by several committees, including an Audit Committee. Our Code of
Ethics and Professional Conduct applies to all of our employees, and they must
renew their adherence to it on an annual basis. Plus, every new employee is
required to take a detailed ethics course.
Our governance practices comply fully with all applicable laws and regulations
in our industry. As a result, the prevailing legislative framework is always taken
into account in every aspect of our risk management activities:
• Reputation risk management: to ensure the rigorous assessment of new
acquisitions and construction projects, on the basis of clearly defined
environmental, social and governance criteria;
• Market risk management: to maintain our strategic position in the upscale
real estate market and keep pace with growing tenant demands;
• Legal risk management: to anticipate changes in regulatory requirements
before they are imposed;
Our track record in this regard speaks to the effectiveness
of these measures: none of the properties we manage
received any fines or sanctions of any kind in 2010. When
we work with a partner and entrust a third party with
the management of a property, we ask those in charge
to provide us with the relevant environmental studies and
indicate any violations or penalties they have incurred.
Nothing of this nature was reported to us during the course
of the year.
Fundamental principles guided by sustainable
development
Given that 2010 saw some significant changes in our
upper management, our sustainable development policy
has not yet been formally adopted. Our governance has
nevertheless continued to be shaped by key principles that
reflect our sustainability priorities.
ENVIRONMENT
Additionally, legislative and regulatory developments are
monitored closely by our Environment Committee, which
acts as a watchdog in this respect to ensure we remain
environmentally proactive in terms of our corporate
operations and legal responsibilities.
COMMITTEE
• Climate change risk management: to identify and mitigate the financial and
operational impacts of any such risks on our portfolio and to reduce our
carbon footprint.
We are also committed to analyzing the environmental impacts of all of the
decisions that we make of an economic nature, as well as ensuring that our
current and future development projects are consistent with LEED standards.
In addition, we see to it that our representatives comply with any guidelines
we espouse and encourage our partners to do the same.
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MÉKA BRUNEL
Executive
Vice President,
Europe
Established 14 years ago, this multidisciplinary group has a
three-pronged mission to:
• implement our environmental policy in all of our properties
• encourage our business partners to adopt a policy similar
to our own
• make sure our partners outside of Québec adhere to
applicable environmental legislation in all of our properties.
In addition, the Environment Committee has developed our
new sustainable development policy, which is set to replace
our current environmental policy.
ECONOMY
SITQ’S INVOLVEMENT IN LEGISLATIVE
REFORM IN FRANCE
In 2009 and 2010, Méka Brunel, Executive Vice President, Europe,
chaired the task force known as the “Groupe de travail Valeur Verte.”
Established in conjunction with the Grenelle Building Plan – an
initiative designed to foster change in France’s energy consumption
structure, this task force has held over 20 meetings involving some
50 high-level participants (executives, business leaders, lawyers,
environmental experts, etc.) to prompt them to consider the impact
of improved energy performance on the value of buildings and come
up with proposals for the government to facilitate the implementation
of environmental legislation in this regard (Grenelle II laws).
“Philippe Pelletier, the head of the Grenelle Building Plan, feels that
it’s up to industry professionals to make proposals to the government
before any legislation is adopted,” says Ms. Brunel. “This is a whole
new way of going about things in France. Usually, laws are passed
and put into practice before they are subject to criticism. But, in this
case, the approach has been one based on collaboration, discussion
and interaction – and it has proven successful.”
In fall 2010, the Groupe de travail Valeur Verte submitted a report
with its recommendations, which are currently being reviewed by
another task force. “That group is responsible for drafting decrees
regarding the application of the Grenelle II environmental laws, some
of which stem from the work of our task force,” Ms. Brunel explains.
To the best of her knowledge, this is the first time an executive
from a Québec firm has played such a prominent role in the French
legislative process.
Ms. Brunel, who has more than 30 years of experience in her
field, has pursued her involvement in this regard by becoming the
head of a new task force looking into the impacts of Grenelle II
environmental laws on the obsolescence of buildings in greater Paris
(Île-de-France).
“SITQ IS A LEADER IN ITS
INDUSTRY.”
INDUSTRY.”SON
SECTEUR»
“The first time I met with SITQ executives, it was
clear that they were just beginning to contemplate
the environmental impacts of building construction
and operations. LEED certification, for example,
wasn’t a term that most of them were familiar with.
But in a few short years, SITQ has made tremendous
strides. Many SITQ properties, including the head
office, are now LEED-certified, and I was recently
informed that certification is a requirement for all of
their development projects. Considering the enormous
impact of building management and operations on
the environment, the quality of life of the people who
work there and urban development in general, SITQ
is now being an environmentally responsible leader in
its industry.”
SIDNEY RIBAUX
Co-Founder of Équiterre
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EMPLOYEES
At SITQ, the very nature of what we do means that we
care deeply about our assets and what happens to
them. And our most precious assets are our people.
Because our employees are so important to us and
because we are always on the lookout for new, best-inclass professional resources, we have implemented a
series of initiatives to help foster quality of life, success
and upward mobility opportunities for everyone.
Cultivating engagement
We feel strongly that acknowledging individual excellence and developing our human capital are vital.
That is why we have implemented highly competitive compensation programs, as well as incentives and
tools that make it possible for all of our employees to fully realize their potential and meet new challenges
within our organization.
Among the tools available to our staff are a career management guide, a competency chart and several
business processes. Employees can also create a personalized development plan and view an up-to-date
list of available positions. All of these services are accessible through our intranet site or by consulting one
of our human resources professionals.
Thanks to these tools and our policies, 25 members of our staff moved into new positions in 2010, through
promotions, lateral transfers or interim appointments. In addition, five of our employees received referral
bonuses.
In 2010, we greatly improved our recruiting processes by setting up a database that enables us to
manage our résumé bank more efficiently. This has reduced recruiting costs and improved the quality of
the applications we receive from recruiters, as they can now draw on a centralized pool of candidates.
Lastly, we reviewed and enhanced the annual awards program designed to recognize exceptional
employee achievements and contributions, in order to improve quality and promote excellence within the
organization. The competition, which for the past decade has been known as Les grandes réalisations
Qualité has been renamed Qualité en tête. It is open to permanent and, in some cases, contractual
employees of SITQ, regardless of where they are based. The selection committee reviews the submissions
received and chooses the finalists in each category. The nominees are then voted on by all employees – a
first this year. In total, 39 entries from several SITQ properties and departments were received in 2010.
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EMPLOYEES
Pay equity: An established practice
SITQ has always complied with all applicable legislation pertaining to pay equity. After the amended Pay
Equity Act was passed in May 2009, we reviewed and revamped our job classes, before determining the
gender predominance of each, in accordance with the criteria set out in the Act. Once this was completed,
we were able to conclude that pay equity has been maintained throughout our organization, including in
those jobs associated with hotel, apartment and retirement housing properties, which were integrated into
our portfolio in September 2009.
Ongoing commitment to professional development
We attach great importance to career management and the complementary roles of employees, managers
and the employer in this regard. It is our responsibility to provide the necessary financial and human
resources to help employees fulfill their career plan. It is up to our managers to identify longer-term staffing
needs, assist their personnel in their career orientation and establish development plans. And we feel that
employees must do their part in terms of analyzing their own strengths, identifying their career interests
and taking charge of their development by making the most of the resources we offer.
PROFESSIONAL DEVELOPMENT:
FACTS AND FIGURES
• Number of courses delivered during the year: 173
• Number of employees enrolled: 308
• Number of training hours provided in 2010: 6,216
• Total investment: 1.13% of payroll
Sustained investment in training
Every year, we devote time, money and effort to providing continuing education opportunities to employees
who wish to hone their skills. In 2010, we invested 1.13% of our total payroll in 173 free training programs
(see table above). We also encourage our employees to take courses outside of the SITQ network, in which
case we reimburse the full cost of their tuition and related expenses.
Enriched, tailored in-house training modules
We further enhanced our training modules in 2010. Introduced in 2008 as a result of an employee survey,
these modules feature richer content that is more closely aligned with the professional needs of our
managers and staff. Furthermore, many SITQ employees are members of professional associations and
orders with mandatory continuing education requirements, intended among other things to ensure their
members constantly update their skills and stay at the cutting edge of their field.
For example, SITQ is now a training provider recognized by the Québec Bar. Accordingly, we can apply to
have the training activities we conduct for our legal professionals counted against the 30 compulsory hours
of continuing education they need to complete within a 24-month period. We adopt the same approach for
several other associations whose activities are related to those carried out by our employees. As a result
of these initiatives, our in-house professionals can keep their knowledge and skills current.
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EMPLOYEES
EMPLOYEE
WELLNESS
A comprehensive benefits package
Mental health and well-being
Employee benefits at SITQ are among the most competitive in the industry. Not
only are they a drawing card for incoming talent, they largely surpass labour
standards provisions, which is a big plus in terms of retaining and motivating
those who are already on our team.
We believe that psychological assistance services, for employees and families
alike, are key to fostering a sense of balance and peace of mind that in turn
helps ensure a positive, productive work environment. We therefore make
a specialized round-the-clock counselling service available to our staff. In
addition, 2010 marked the third year we offered our employees access to
services to help them find housing for aging parents who are no longer able
to maintain an independent lifestyle. This program is run in conjunction with
Visavie.
Our work-life balance initiatives are particularly popular. They include a
flextime option with core hours, shorter work weeks, summer hours (via the
redistribution of hours worked per week), priority access to daycare facilities
and personal leave for important matters.
Workplace health and safety
At SITQ, a safe, healthy work environment is an absolute priority, and we
do everything in our power to prevent injuries and accidents on the job.
Our workplace accident rate is particularly low, with four incidents reported
in 2010.
SPOTLIGHT ON SITQ EXECS: MARTINE
DROLET, CHAIR OF THE BOARD OF
DIRECTORS, ORDRE DES CONSEILLERS
EN RESSOURCES HUMAINES AGRÉÉS
On April 22, 2010, Martine Drolet, SITQ’s Vice President, Human Resources, was
appointed Chair of the Board of Directors of the Ordre des conseillers en ressources
humaines agréés (CRHA). Considered to be the pre-eminent organization in its field in
Québec, the Order represents more than 10,000 members, candidates and students.
One of the chief goals Ms. Drolet hopes to attain during her two-year term is to further
the reputation and credibility of the Order and elevate the stature of her chosen
profession. In this regard, she will be capitalizing on the extensive experience she
has acquired at SITQ. “The heart of an organization is always its people,” she says.
“At SITQ, we are fortunate to have our Human Resources Department so involved
in so many aspects of the organization, be it change management, restructuring,
reengineering, recruitment, competency development, overall compensation
programs, recognition and engagement strategies, crisis simulation or business
continuity planning. The sheer variety of activities and responsibilities associated
with our profession makes it incredibly motivating – and this spills over into our
organization, in its capacity as a strategic partner.”
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EMPLOYEES
HEALTHY MIND,
HEALTHY BODY
Every year, we provide our employees with a number of opportunities to stay
fit and have fun.
Vital program
Launched in January 2009 for an initial two-year period, the innovative Vital
program enjoyed another successful year in 2010. Available free of charge to
staff members, the initiative promotes healthier lifestyle habits.
Access to exercise facilities
Four years into its operation, our fitness centre at the SITQ head office is more
popular than ever and continues to expand its line-up of services. Our employees
can consult with fitness specialists and make use of exercise equipment and
programs to get and stay in shape. And SITQ employees working at other
buildings in Montréal can take advantage of special arrangements that have
been made through our Social Club with on-site or nearby workout centres.
Lunchtime health and wellness lectures
Once again this year, SITQ arranged a series of six midday talks on themes
that our employees had expressed interest in exploring. Held at the
Centre CDP Capital, the series brought in respected experts from a variety of
backgrounds to address topics such as workplace organization, nutrition, tips
for reducing one’s environmental footprint, personal growth and the pursuit of
happiness, fire prevention and job motivation.
Celebrations and community activities
Every year, we hold a number of events for employees and their families, such
as our children’s Christmas party and our holiday reception.
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ENVIRONMENT
In keeping with our commitment to being a leader in sustainable development within the real estate sector,
we are a long-time advocate of responsible practices in the management of our buildings and development
projects, as well as in the administration of our assets that are managed by a third party.
We are keenly aware of the major environmental issues involved in commercial real estate operations and
the significant impact they can have on resource use. From our perspective, it is incumbent on owners of
commercial properties to monitor and minimize their waste production, their consumption of energy, water
and various materials and the amount of greenhouse gases (GHGs) produced by their facilities.
These GHG emissions, the leading known cause of climate change, are the focus of our environmental
strategy, even though the Western Climate Initiative1 does not foresee imposing GHG targets on the real
estate sector before 2015 and despite the fact that the impact of this industry on emissions varies greatly
from one country and one market to another.2
To reduce our GHG emissions, we have undertaken in recent
years to lower power consumption in our buildings, either by
adopting policies and practices designed to monitor and control
energy output or by upgrading infrastructure and facilities. In
addition to benefiting society as a whole, this approach yields
immediate and positive effects on the quality of life of those
who work in, live in or visit our properties and leads to ongoing
improvements in the environment they offer.
At the same time, we have striven to measure and document our overall environmental performance. We
have therefore compiled a variety of data that will enable us, for the first time in our history, to disclose
how much energy and water is used by the properties in our portfolio, and the level of category 1 and
category 2 GHGs emitted (GHGs that we control directly and that result from our energy consumption).
The ownership structure in place for our assets and the technical complexity associated with quantitative
data collection (measurement techniques vary greatly from one asset and one partner to the next) have
made the information-gathering process very challenging. We are nevertheless satisfied with the results:
our 2010 data covers more than 80% of the total area of our office assets. As for our Hotel, apartment
and retirement housing portfolio, we were able to compile data on just under a dozen properties. Because
this proportion falls short of our needs, our goal is to flesh out this information as soon as possible.
Now that we are in a position to assess our overall performance, we can set tangible, measurable goals
for reducing our environmental footprint and respond to the growing needs of tenants, occupants, hotel
patrons and other SITQ stakeholders. Over the long term, we are confident that this approach will deliver
real added value for our portfolio.
Lastly, from an awareness perspective, we have continued to encourage our employees, tenants and
occupants to adopt environmentally responsible habits on a daily basis. Our Expresso intranet site and
our Clikinfo and The Leader + newsletters are useful tools for promoting green initiatives and drumming
up support for the eco-friendly events and causes that we embrace.
www.westernclimateinitiative.org (The WCI is a partnership of several Canadian provinces and U.S. states that is laying the framework
for a cap-and-trade emissions trading system in several cities where SITQ owns assets).
A KPMG study (www.kpmg.com/ca, November 17, 2009) reveals that, in 2009, the Canadian real estate industry generated 13% of the
nation’s GHG emissions and consumed 14% of its energy. In Europe, the report “Valeur verte dans le parc tertiaire” (www.plan-batiment.
legrenelle-environnement.fr) shows that in 2010 the building sector was responsible for 40% of all the energy consumed in France and
produced 23% of the country’s GHG emissions.
1
2
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ENVIRONMENT
SUSTAINABLE CONSUMPTION OF ENERGY AND RESOURCES
Improving environmental performance in the commercial real estate sector means finding effective ways to
manage how resources are consumed. Following is an overview of our performance in 2010, divided into three
categories: energy, water and materials. A list of the properties covered under each category can be found at the
end of the report, in the section Report Context and Parameters.
Energy
All of the properties owned or co-owned by
SITQ are powered by electricity, natural gas,
fuel oil and/or steam (in the case of heating
and air-conditioning systems). The table on the
right shows overall energy consumption for the
SITQ office portfolio, using the data from the
buildings for which we were able to obtain
information.
CONSUMPTION
ENERGY
Energy consumption
intensity
570,565,482
Total surface area
Energy consumption
intensity
17,010,108
1,580,239
33.5 kWh/sq. ft.
361 kWh/m²
SQUARE FEET
SQUARE METERS
67
Emissions
(tonnes CO2e)
Total surface area
67
Energy
consumption (kWh)
Number of properties
included in the calculation
GAS
EMISSIONS
GREENHOUSE
For the properties we manage in Québec,
our goal, set in conjunction with our supplier,
Cofely, is to reduce energy consumption by
2% per year. In 2009, the modernization of
our heating and air-conditioning systems led
to a significant 6.8% drop in consumption
compared with the previous year. But, in
2010, this reduction rate fell to 1%, mainly
because energy savings and upgrade initiatives
were not rolled out on as large a scale.
Number of properties
included in the calculation
131,892
17,010,108
1,580,239
7.7 kg CO2e/sq. ft.
83 kg CO2e/m²)
SQUARE FEET
SQUARE METERS
The table above contains data on GHG emissions in our portfolio. It covers 100% of the emissions
produced by our properties under management in Québec and a proportional percentage, based on our
ownership interest, for our other assets. This approach is consistent with the guidelines issued by the Real
Property Association of Canada.3
Meanwhile, although we do not yet possess comprehensive data for our hotel portfolio, the carbon
management program in our eight Fairmont hotels in Canada has continued to enable these establishments
to measure and monitor their progress in reducing CO2 emissions. Fairmont’s corporate-wide target is to
reduce its GHG emissions by 20% below its 2006 levels by 2013.
3
More details on the methodology can be found in the section Report Context and Parameters.
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ENVIRONMENT
Water
CONSUMPTION
Number of properties
included in the calculation
WATER
Many of our properties already have water meters,
and more and more buildings in the rest of our
portfolio are following suit. This is due in part to the
LEED program, which requires certified properties
to be equipped with these devices. The table on
the right provides water consumption data for
the office properties for which this information
was available.
57
Water
consumption (m3):
928,395
Total surface area
Water consumption
intensity
13,115,608
1,218,440
0.071 m³/sq. ft.
0.76 m³/m²
SQUARE FEET
SQUARE METERS
Materials
Paper, office supplies and electronic equipment,
not surprisingly, represent the bulk of the
materials used by the SITQ head office. Paper
consumption alone amounted to 12.2 tonnes
in 2010.4 A number of initiatives have been
introduced in recent years to reduce the amount
of paper we use: we have computerized our pay
slip systems, programmed all our printers to print
double-sided and made it a practice to buy Forest
Stewardship Council (FSC)–certifi ed paper. In
terms of electronic devices, we purchased 55
cell phones and mobile devices in 2010 and 165
computers over the 2009–2011 period.
The other aspect of our business that uses a
significant amount of materials is real estate
management. Over the past three years, all
development and renovation work in this regard
has been carried out using deconstruction (as
opposed to demolition) methods. In other words,
when we prepare for the arrival of a new tenant, we
carefully remove and dismantle everything we can
and reuse it in the same unit or elsewhere or send
it to a recycling facility.
We also require the contractors working in our
properties to ship all non-reusable materials to a
recycling centre. Accordingly, we recently set up
a system to track all materials diverted from and
sent to landfill so we can keep tabs on our annual
progress. In 2010, we recycled and reused 4,000
tonnes of materials and nearly 45,000 square feet
of fibreglass insulation and ceiling tiles. As the table
below shows, a total of 65 tonnes of materials was
landfilled during the course of these projects.
4
Drywall
Paper comsumption at the Centre CDP Capital head office.
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Ceiling
tiles
39,000 SQUARE FEET
5,657 SQUARE FEET
2,603 TONNES
1,287 TONNES
324 TONNES
Other
Concrete Metal
recycled
materials
Waste
sent to
landfill
65 TONNES
Carpet
60 TONNES
21 TONNES
LANDFILL DIVERSION AS A RESULT OF THE
DECONSTRUCTION PROGRAM IN QUÉBEC
Fibreglass
insulation
ENVIRONMENT
Many of the properties under our management
or administered by a third party engage in the
recycling of various types of materials. The table
on the right summarizes the amounts recycled in
2010, for all of our properties for which this type
of information is available. The total cumulative
quantities of paperboard, paper, plastic, glass and
metal recycled in Québec this past year will be
used to calculate the number of trees that we will
plant in 2011 as part of the conVERTir Program
(As explained in the separate text on the topic).
RECYCLING
Number of properties
included in the
calculation
58
Quantity of recycled
materials (tonnes)
5,288
Lastly, some of our Fairmont hotels are particularly
ardent recyclers. Every month, the Fairmont
Vancouver, for instance, sends 9.9 tonnes of
organic waste to a composting site and recycles
4.7 tonnes of paperboard, 3.6 tonnes of paper,
762 kilograms of plastic and 28.6 kilograms
of batteries. The Fairmont Waterfront, also in
Vancouver, has diverted almost 70% of its waste
from landfill via its recycling and composting
programs. And the Fairmont Olympic, in Seattle,
recycles 14.9 tonnes of materials and 22.5 tonnes
of food on a monthly basis.
Greening up
our recycling
performance
Furthermore, we encourage our property managers
to recycle and, when appropriate, we recommend
to our partners that they adopt similar practices.
We hope to complete the recycling profile of our
third party–managed properties in 2011.
In commemoration of Earth Day 2010, we joined
forces with conVERTir, a province-wide tree-planting
movement. We doubled our impact in this regard
by choosing strategic locations for our trees (along
shorelines to minimize erosion, near roadways as a
windbreak, etc.). We have also tied in the number of
trees planted with the recycling results in our properties:
the more our tenants and employees recycle, the more
we contribute to reforestation. As a result of this
program, 256 trees (representing 252 kg/100 m2 of
paper and paperboard, plus 3.9 kg/100 m2 of glass,
plastic and metal) will be planted in a farmland area
in the Beauce region.
PAPER, PAPERBOARD, PLASTIC,
GLASS AND METAL RECYCLED 2004-2010 –
QUÉBEC PROPERTIES
PAPER/PAPERBOARD
(KG/100 M2)
2010
2009
2008
2007
2006
2005
2004
215
252
251
249
218
217
205
GLASS/PLASTIC/
METAL (KG/100 M2)
2010
2009
2008
2007
2006
5
3.9
5.8
3.6
2.7
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ENVIRONMENT
ENVIRONMENTAL
INITIATIVES, CHALLENGES AND EVENTS
Every year, we are proud to invest time, money and effort in various public
initiatives that stress the importance of safeguarding the environment for future
generations.
Earth Day
On every April 22, for the past five years, we have celebrated Earth Day – a
planet-wide event that aims to raise public awareness about environmental
issues.
In 2010, we once again organized a collection of hazardous waste, in
conjunction with the Éco-quartier offices in the Montréal borough of VilleMarie. As a result, we diverted the following from landfill:
- 668 kilograms of batteries;
- 13,340 linear feet of fluorescent tubes;
- 109 kilograms of compact fluorescent light bulbs;
- 22 kilograms of acid, oxidants and chlorine.
Earth Hour
To show our support for this global movement, we turned off the outside lights
at our 10 properties in Montréal and Québec City for one hour on March 27,
2010. This marked the third year in a row that we joined forces with this
climate change initiative, which is observed in some 50 countries around the
world.
Défi Climat
Défi Climat is Québec’s largest awareness-raising campaign in the fight against
climate change. For the second year, we encouraged all of our employees to
take part in this widespread movement and help reduce GHG emissions across
the province.
In Town Without My Car Day
Every year, as part of this major international initiative, we invite our employees
and tenants to use an alternative form of transportation (walking, cycling,
public transit or carpooling) to get to work. In 2010, we also took part in the
corporate competition that was organized in conjunction with the event.
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City of Montréal’s sustainable development plan
Montréal’s sustainable development plan is designed to encourage members
of the public, businesses and organizations to adopt specific sustainabilityoriented goals and actions. As part of the 2010–2012 phase of this plan,
which is ongoing until 2015, we have committed to several initiatives to help
reduce our carbon footprint.
Polar bears on thin ice
This past winter, the viewpoint of Place Ville Marie was the backdrop for an
imposing ice sculpture of a polar bear, as part of an Équiterre-led project. The
sculpture slowly melted away through until April, mirroring the way the ice in
the Arctic Ocean is melting due to global warming, until the only thing left was
an inner bronze skeleton. SITQ provided logistical and financial support to this
project, which took its cues from similar initiatives undertaken in London and
Copenhagen.
ENVIRONMENT
“THE CHOICES MADE BY A USER
OF ENERGY SERVICES LIKE
PLACE VILLE MARIE CAN MAKE
A REAL DIFFERENCE”
“Since the 1960s, Place Ville Marie has been heated using steam produced by Climatisation et
Chauffage Urbains de Montréal (CCUM), which distributes steam to several clients in downtown
Montréal via a network of underground pipes. Fuel oil and natural gas are long-time rivals with
respect to powering the production of this steam.
When its contract came up for renewal, Place Ville Marie asked CCUM to switch to a system powered
exclusively by natural gas. The complex confirmed that it was ready to commit to an agreement in
this regard until 2029. Now that’s what I call vision. […]
This initiative alone will make it possible to achieve an immediate 15% reduction in GHG emissions
in downtown Montréal, in addition to greatly improving air quality in this area, reducing the motor
traffic associated with fuel oil delivery and allowing CCUM to tap into substantial savings in terms
of maintenance costs.
This example clearly shows how the choices made by a user of energy services like Place Ville Marie
can make a real difference.”
Excerpt from a speech delivered by Sophie Brochu, President and Chief Executive Officer of Gaz Métro, to the Canadian Club of
Montréal on February 1, 2010.
Place Ville Marie, Montréal
INNOVATIVE WAYS
OF CUTTING DOWN
- Between January and November 2010, the parking garage at Édifice de la
Haute-Ville, in Québec City, underwent renovations, which included repairs
to reinforced-concrete beams, columns, walls and slabs. The old concrete
– 1,250 tonnes’ worth – was shipped to a recycling centre, where it was
crushed for reuse as backfill, while 37,535 kilograms of reinforcing steel
was salvaged and repurposed.
- The new steam-based car wash that opened at Place Ville Marie in midOctober 2010 features a special water recovery and filtration procedure
that makes it possible to clean the outside of an average vehicle with a
mere 2.5 litres of water. Using this same process, the eco-friendly car
wash at 1000 De La Gauchetière has generated substantial water savings
since 2009: in 2010, 2,000 vehicles were cleaned using 5,000 litres of
water, compared with the 150,000 litres that would have been required
to run a conventional system. That’s 30 times less! With more than 500
vehicles washed in less than three months, Place Ville Marie has already
saved over 13,000 litres of water.
- Inspired by the success of the composting program for coffee grounds set up at
the Centre CDP Capital in 2009, the property management team has established
a similar service for paper hand towels in most of the washrooms throughout
the complex. Although we make no profit on this initiative, it represents yet
another step toward a broader composting program for our properties, a
goal we hope to achieve in the near future. In the meantime, we expect to
divert up to 16 tonnes of paper from landfill in the first year of this project,
which is a joint undertaking with the adjacent 415 Saint-Antoine Ouest and
455 Saint-Antoine Ouest.
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COMMUNITY
AND KNOWLEDGE
Every year, we lend our support to numerous
causes, assist community organizations
and contribute to the development of
knowledge and know-how, both in
Canada and around the world. Although
our philanthropic efforts benefit many
different organizations, we primarily
endorse endeavours that focus on
children, the environment and real
estate heritage preservation. In
2010, consistent with this approach,
SITQ’s combined sponsorships and
gifts came to nearly $800,000, as this
graph shows.
3.2%
OUR CONTRIBUTIONS AND
SPONSORSHIPS IN 2010
34.8%
$25,500 Environment
$276,300 Children
49%
$389,200 Real estate heritage
preservation and knowledge
$102,900 Other
13%
FINANCIAL COMMITMENT AND
CONCRETE ACTION IN SUPPORT OF
CHILDREN AND THE COMMUNITY
In addition to offering our employees opportunities to volunteer their time and
expertise to various causes throughout the year, we renewed our commitment
to giving back to the community and supporting children in need. We helped
organize a number of charity events, took part in fundraising drives and made
our buildings and premises available to various organizations.
by SITQ employees included sorting food donations, weeding, planting trees,
cleaning walls and windows, painting, cooking and assembling furniture.
International Giving Back Day
- Montréal : L’Abri d’espoir, Autisme Montréal, the Éco-quartier offices
in Hochelaga-Maisonneuve, Longue-Pointe and Ville-Marie, Héritage
Laurentien, Répit Providence, Les Lutins verts;
For the second year in a row, SITQ offices around the world took part in
Giving Back Day, which was held on August 27. For the occasion, some 250
employees in Montréal, Québec City, Calgary, Paris and New Delhi spent the
day volunteering in their respective communities. Employees were thus given
a paid day off to carry out a variety of tasks for one of several worthy causes
selected by SITQ.
Recipient organizations were chosen based on how closely aligned to two of
our philanthropic focuses, i.e., child welfare and environmental protection,
as well as the nature of the work to be done, geographical location and the
ability to accommodate our volunteer teams. Some of the tasks accomplished
Montréal
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Québec
Giving Back Day was a huge success once again this year. Volunteers
appreciated how rewarding the experience was, and the 12 recipient
organizations were grateful for the free and much-needed labour:
- Québec City : Moisson Québec;
- Calgary : Terry Fox Foundation;
- Paris : Communauté Emmaüs;
- New Delhi : Salaam Baalak Trust.
Calgary
Paris
New Delhi
COMMUNITY AND KNOWLEDGE
2010 Classique SITQ golf tournament
Centraide
The latest edition of our annual golf tournament raised $111,243 for six
children-oriented charities: The Lighthouse – Children and Families, the
Diabetic Children’s Foundation, the Fondation des jumelles Coudé, the
Canadian Liver Foundation, the Montréal Real Estate Foundation for Kids and
the Lachine Hospital Foundation.
Every year, the Caisse de dépôt et placement du Québec and its real estate
subsidiaries (including SITQ) donate generously to Centraide, so it can continue
to support some 1,700 community organizations and make a difference in
the lives of those who need it most. Beyond our staff’s involvement in several
Centraide-sponsored events (March of 1000 Umbrellas, RBC Challenge, etc.),
we hold internal fundraisers and encourage employees to give directly to the
cause. In 2010, this translated into a grand total of $106,000 in donations.
Montréal Real Estate Foundation for Kids
The MREFK, whose mission is to accommodate the real estate needs of youth
organizations, is one of our long-standing community partners. In 2010, we
once again donated the proceeds from the sale of the paper and paperboard
recyclables collected at our Montréal offices to the charity. This year, the
amount came to over $90,000.
Other endeavours
SITQ regularly supports the causes near and dear to the hearts of our many
tenants, occupants and suppliers. This year, we helped out several organizations
by allowing them to post notices about their fundraising campaigns in our
properties at no charge. We also make public space available to community,
humanitarian and environmental organizations for various events. In a similar
vein, we rent some of our office space to charitable or cultural organizations
for a special reduced fee.
SITQ JOINS FORCES WITH
HÉRITAGE MONTRÉAL
“This year, which marks our 35th anniversary, Héritage Montréal became a partner
of SITQ and one of its financial beneficiaries. This association is a logical and
natural one, since SITQ is the owner of several iconic Montréal landmarks and plays
an active role in preserving our architectural history while working hard to build a
legacy for today and tomorrow – the Centre CDP Capital is clear proof of this. By
teaming up with Héritage Montréal, SITQ’s leadership is showing that they have
a solid grasp of what sustainable development really is. It’s not only about green
roofs and bicycle racks – it’s first and foremost a matter of clear vision, efficient
practices and solid principles. And academics and lobbyists are not the only driving
forces behind heritage protection – teamwork and partnership with the business
community are just as important and influential. Thanks to SITQ’s financial support,
we have been able to create new guides and new Architectours programs. These
initiatives, which were initially directed at Montréalers to enlighten them about
the wealth of architectural riches their city holds, have been a hit with tourists as
well. We also worked with SITQ to put together the Montréal Architectural Heritage
Campaign, a prestigious undertaking that we implemented in conjunction with the
city in 1991 and the only event of its kind in North America.”
DINU BUMBARU
Policy Director
Héritage Montréal
Sun Life Building, Montréal
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COMMUNITY AND KNOWLEDGE
PROMOTING THE DEVELOPMENT OF EXPERTISE
AND GROOMING THE NEXT GENERATION OF
LEADERS
Because we look at human resources issues from a
longer-term perspective and because we firmly believe in
the importance of having highly specialized professionals
on our team, we invest in the future of the real estate
industry by sponsoring academic chairs and university
programs and by hosting several large-scale student
activities.
UQAM SITQ Real Estate Chair
For 15 years now, SITQ has been working in close partnership with this real
estate research and teaching chair at the Université du Québec à Montréal
(UQAM). Our support is multifaceted: we provide an annual financial
contribution of $150,000, we help organize events, we make public spaces
available for special activities and two of our executives serve on the Chair’s
steering committee.
SITQ/Université de Montréal Urban and Real Estate
Development Observatory
Established in 2006 in conjunction with the Université de Montréal, the
Observatory is devoted to shedding light on and further strengthening the ties
that exist between urban development and the real estate industry. This year,
we once again renewed our annual $100,000 contribution to the initiative.
Support for university activities
In 2010, facilities in several of our properties were made available free of
charge to students for special events. For example, the Centre CDP Capital
Parquet played host to the 13th annual inter-university stock market simulation,
which was attended by more than 500 students from across Canada. We
also provided free guided tours of the Centre CDP Capital to 512 design and
architecture students during the course of the year.
UQAM AND SITQ:
A WINNING PARTNERSHIP
“During our 15-year association, SITQ’s financial, logistical
and hands-on contributions have enabled UQAM to push
the bounds of real estate research and help a growing
number of students embark upon a career in this field.
The SITQ Real Estate Chair has had a major impact in
this regard. Its scholarships and financial support at the
undergraduate level have made it possible for several
students to embrace the profession and make it one of the
most dynamic career paths in the industry. The number of
graduates who have chosen this career and earned their
professional designations has risen sharply. For instance,
the Ordre des évaluateurs agréés du Québec welcomed no
fewer than 80 new members in 2010, a large proportion of
whom were UQAM graduates. So the outlook for the future
is bright indeed!”
JACQUES SAINT-PIERRE
Director, UQAM SITQ Real Estate Chair
School of Management
Université du Québec à Montréal
SITQ/UNIVERSITÉ DE MONTRÉAL
OBSERVATORY: FOCUS ON THE ISSUES FACING
TODAY’S REAL ESTATE INDUSTRY
“The partnership between SITQ and the Faculté de l’aménagement of the Université de Montréal is essential to advancing
knowledge about urban and real estate development and to providing students with graduate and postgraduate education
opportunities in this field. Through this collaboration, the SITQ Observatory is helping us to develop research programs that
focus on the critical issues of today, such as the social acceptance of major development projects and the incorporation
of sustainable development principles into urban planning.”
PAUL LEWIS
SITQ Urban and Real Estate Development Observatory
Institut d’urbanisme, Faculté d’aménagement
Université de Montréal
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COMMUNITY AND KNOWLEDGE
SALAAM BAALAK TRUST:
SOCIAL RESPONSIBILITY
WITHOUT BORDERS
Since August 2009, SITQ’s India office has been covering the education and related costs for a young orphan named Anmol
in New Delhi, in partnership with local NGO Salaam Baalak Trust (“Salaam Baalak” translates to “salute the children”).
Anmol just started ninth grade and aspires to become a computer engineer. The financial support provided by SITQ also
pays for Anmol’s clothing, food and medical expenses. Plus, during Giving Back Day, everyone at SITQ India volunteered
their time at Salaam Baalak Trust. SITQ will continue to sponsor Anmol in 2010–2011.
For more info: www.salaambaalaktrust.com
A SUCCESSFUL
“BID” FOR
BOSTON
SITQ is an engaged corporate citizen, both in Québec and
beyond. As a case in point, we lent our support to the
revitalization of downtown Boston in 2010, as part of the
Business Improvement District (BID) initiative. The purpose
of this program is to improve the physical appearance and
ambiance of public areas by cleaning, maintaining and
restoring select streets and sidewalks and attracting the
required private investments to cover the cost. Owners’
contributions are based on a percentage of their property
taxes. In our case, this translated into US$140,000 for 33
Arch Street and US$175,000 for One Boston Place.
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SITQ / ACTIVITY REPORT AND
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OURMUCH
TENANTS
MORE
THAN OUR CLIENTS
This year, our social responsibility report features a section dedicated
specifically to our real estate management services. There are many reasons
for this new approach. The nature of real estate management is decidedly
different from asset ownership. And more than a third of our staff is involved
in this aspect of our business, which encompasses leasing, construction and
property administration, Environmental management is a priority for each of
these teams. Because they directly oversee building operations, they are able to
implement several activities and programs of a social or environmental nature.
For the sake of clarity and in order to more accurately describe the activities
related to projects and services that benefit our tenants and occupants, we
therefore decided to create a separate report section dealing with this aspect
of our portfolio.
Our real estate management activities are focused on 10 properties
in Montréal and Québec City. Our philosophy in this regard is
simple: we strive to cater to the needs of tenants by providing
them with high-quality facilities and an environment conducive to
the successful and smooth operation of their business. For us, our
tenants are much more than our clients: they are our partners in
every regard.
To ensure they receive top-notch service, we make it our priority to anticipate
their needs and offer them a range of services that ensure a pleasant,
productive work environment.
Tenant Service Centre
Occupants in all of our properties under management have access to an agent
who is assigned to their building to answer their questions about our services,
policies and green practices. On an average day in 2010, 266 queries were
received and managed, in accordance with our standards in terms of response
time, follow-up and quality of service.
Constant quality control for services delivered to
tenants
Our properties undergo daily quality control checks, conducted by professionals
who assess such aspects as safety, security, emergency response, sanitation,
comfort, indoor air quality and environmental compliance. Satisfaction levels
are reviewed at regular meetings with tenant representatives. This makes it
possible to make prompt adjustments in these services as specific needs arise.
Lastly, every three years, we conduct an in-depth tenant survey to assess the
level of satisfaction with the services we provide. The next survey is scheduled
for 2011.
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TENANTS
Effective communication and information sharing
Clikinfo, our quarterly online newsletter tailored to each of our properties,
keeps our tenants informed about a wide range of topics, including ongoing and
upcoming projects and activities, sustainability initiatives and more.
Special activities
We are committed to providing our tenants and their employees with a
stimulating work environment. That is why we organize a wealth of events and
activities designed to entertain, enliven and enlighten.
Every year, we sponsor Les Concerts-midi du Quartier international, the Un air
d’été concert series presented on the outdoor patios of four of our Montréalbased properties and holiday choral concerts. In addition, several of our
buildings played host to numerous exhibitions during the year on topics as
varied as fashion, colonial Mexico, Frida Khalo, Nunavik, prominent Québecers
(Portraits d’Influence), contemporary art (Art souterrain) and Montréal’s
architectural jewels (Les belles montréalaises).
Our Éco-Événement program – the aim of which is to raise awareness about
our green initiatives and encourage our tenants to adopt environmentally
friendly practices in their workplace – was dormant in 2010. But a new and
improved version is in the works for 2011.
A more intimate dialogue with our retailers
This year, we continued to support the activities of the sustainable development
committees in each of our properties under management. The primary purpose
of these committees is to stimulate discussion about the sustainability
objectives in each building. These meetings not only help us adjust this social
responsibility report in line with their priorities and concerns, they are also
fertile ground for cultivating ideas to reduce energy consumption, improve
recycling, promote alternative transportation and so forth.
Each committee is made up of one representative of every tenant who wishes
to be involved, along with two SITQ representatives (the Green Committee
representative for the property and the environment coordinator). Their mission
is to brief tenants on the scope of SITQ’s environmental initiatives, keep them
abreast of current projects and update them on the energy performance of
their property. Participating tenant representatives become SITQ ambassadors
of sorts, bringing back the information they receive to their respective teams.
Reducing our energy consumption and maintaining
a healthy workplace: A top priority
As we emphasized in the Environment section of this report, we are steadfast
in our commitment to reduce our energy consumption in our properties under
management, while ensuring that comfort and indoor air quality are maintained
at optimal levels. We have even concluded performance-based agreements
with the energy management consultants at Cofely to provide them with a
financial incentive if they are able to surpass our reduction goals.
Furthermore, the quality of the air we breathe in the buildings in SITQ’s
Québec portfolio ranks among the best in the real estate industry. It meets
with the strictest standards, as set forth by the American Society of Heating,
Refrigerating and Air-Conditioning Engineers (ASHRAE). Every year, we
perform the necessary checks to make sure these norms are maintained. And
we encourage our tenants and occupants to follow our example.
GREEN
COMMITTEE
SITQ’s Green Committee celebrated its fifth
anniversary in 2010. Its mission is to improve our
environmental performance by enhancing practices
and implementing employee and tenant programs.
Thus far, it has rolled out a number of innovative
initiatives, such as establishing sustainable
development committees in our Québec properties,
achieving certification for several buildings, training
employees on new environmental standards and
creating a permanent environmental coordinator
position.
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SITQ / ACTIVITY REPORT AND
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TENANTS
Alternative commuting solutions
For many years, we have been advocating the use of alternative means of
transportation to meet the commuting needs of our tenants and occupants.
And 2010 was no different. Our Montréal properties are all readily accessible
by public transit and located near BIXI self-service bicycle rental stations. Plus
they boast a range of amenities and services designed to promote greener
transportation choices.
Communauto
This network of self-service vehicles, which offers several packages at varying
price points, is steadily growing in popularity in Montréal. At two SITQ
properties – 1000 De La Gauchetière and the World Trade Centre Montréal –
Communauto cars can park at one of four reduced-rate spots. Through this
initiative, we are showing our support for the organization, which will soon
be integrating electric cars into its fleet, and making it easier for tenants,
occupants and employees to take advantage of this service.
Cycling
Most of our properties under management boast a comprehensive set of bikefriendly facilities, complete with secure indoor parking, showers, changing
rooms and amenities especially adapted to cycle commuters. In 2010, our
properties in Montréal were equipped with 663 secure bicycle parking spots,
as well as 40 temporary visitor spots. Across the Québec City portfolio, there
is secure parking available for a total of 97 bicycles.
This year, we added 180 indoor bicycle parking spaces at Place Ville Marie.
They are keycard-accessible and protected by video surveillance. These brandnew facilities include men’s and women’s changing rooms, each of which
features 38 lockers and three showers.
For the past seven years, SITQ has also been working with AccèsVélo, a program
in Montréal that makes 26 self-service bicycles available to our downtown
properties. This year, these bicycles were borrowed 339 times, compared with
523 times last year. This dip in participation may be attributable to the growing
popularity of the BIXI program.
We are also avid promoters of cycling as a transportation option through an
array of channels, including the Web, our intranet site, various brochures we
publish and information booths in our properties. And, through our Social Club,
we encourage our employees to take part in the Montréal Bike Fest. This
year, 56 of our staff members participated in this highly anticipated week-long
cycling event.
A sought-after partner in the organization of
eco-responsible events
It takes expertise and commitment to put together a green event. You need to
know how to integrate the principles of sustainable development into each aspect
of the planning process.
The first step is to control and measure adverse environmental impacts (minimize
waste production, greenhouse gas emissions, use of natural resources, etc.).
Then it is important to seek out positive solutions (select local providers that
endorse sustainability, fair trade, social reintegration, charitable causes or other
worthwhile principles).
In this regard, SITQ can provide event facilities that meet the most stringent
requirements, among them the newly adopted BNQ (Bureau de normalisation du
Québec) standard “Sustainable Development – Responsible Event Management.”
Not only do we offer rental services that meet these criteria, but we can also work
with organizers to ensure compliance throughout the process, thus increasing
their chances of having their event certified as eco-responsible.
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A PROPERTY OWNER
WITH VISION AND
COMMITMENT
“As the owners of Place Ville Marie since 2001, SITQ
is constantly working to improve the infrastructure of
this Montréal landmark. They have replaced the cooling
towers, mechanical HVAC systems and domestic water
pumping system and eliminated CFCs from our airconditioning.
“In addition to these upgrades, they have provided
occupants with a number of activities and amenities:
lunchtime concerts, holiday choral performances, a
bustling retail scene and several new restaurants.
“SITQ’s environmental and sustainable development
priorities help make it one of the world’s top real
estate companies. To honour this pledge, it undertakes
many large-scale initiatives, but it also does plenty of
other things on a smaller scale, like replacing the 456
incandescent light bulbs in the lobby, installing LED lights
on the Christmas tree on the esplanade, recycling paper,
plastic, glass, metal and cell phones, purchasing green
supplies, automating internal systems to eliminate paper
and making various programs available to employees and
tenants.
“As tenants, we benefit from these initiatives, and we
consider ourselves lucky to be working with a property
owner with such vision and commitment. SITQ’s priorities
are a good fit for our own corporate values.”
NATHALIE KHOROMANSKY, BBA
OPERATIONS LEADER, EAST CANADA
DELOITTE
TENANTS
WORKING HAND IN
HAND WITH OUR
TENANTS: PUTTING
DECONSTRUCTION
PRINCIPLES INTO
PRACTICE
In 2010, during the first phase of the project, which involved the
When the Borden Ladner Gervais (BLG) legal firm renewed
to flooring made from natural or recycled materials.
their lease at 1000 De La Gauchetière, they decided to
take advantage of the opportunity to renovate their offices.
During the planning stage, we pointed out to BLG that the
SITQ-owned property is BOMA BESt–certified and in the
process of working toward LEED certification. Consequently,
we recommended deconstruction as a way of promoting the
recycling and, wherever possible, reuse of certain materials.
BLG greeted this prospect with enthusiasm and went one step
further, expressing the desire to maximize the use of green
redevelopment of two out of BLG’s four floors, deconstruction
techniques led to 55,600 kilograms of various materials and
37,000 square feet of carpet being sent to recycling facilities.
In contrast, 8,813 kilograms of waste was shipped to landfill
sites for disposal. Moreover, a significant amount of material
from the old offices was set aside for use in the new ones.
And when new items were needed, they were chosen for their
eco-friendly characteristics – from LED lighting fixtures and
motion detectors to shut off lights when an area is not in use
“In the past few years, we had adopted numerous initiatives
to improve our environmental footprint and reduce energy and
resource consumption at BLG,” explains Maurice Poitras, Chief
Operating Officer, Montréal. “Renovating our offices provided
an excellent opportunity for us to take things to the next level.
For us, SITQ was a partner who shared our priorities, not only
in terms of salvaging and reusing construction materials but
also when it came time to selecting new ones.”
construction methods.
Recyclables diverted from landfill
37,520
SQ. FT. CARPET
Material reused in new construction projects
4,950 SQ. FT. DRYWALL
34,868 KG GYPSUM
55 DOORS AND FRAMES
13,109
17,200 SQ. FT. ACOUSTIC INSULATION
KG WOOD
7,642 KG METAL
22,227 SQ. FT. ACOUSTIC TILES
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AWARDS AND
CERTIFICATIONS
Every year, a number of properties managed, owned or co-owned by SITQ are
singled out for recognition for their design, energy performance or management
and operational approach. This past year was no exception in terms of awards
and certifications in Québec and throughout North America. No fewer than
62 of our office properties, i.e., 39% of our entire office portfolio, and 15 of
our hotels are now certified under a recognized environmental program (for
a full list, see pages 56 and 57). In addition, we ourselves helped highlight
excellence in the real estate industry, by sponsoring a new sustainable
development award in France and by presenting, for the third year, an award
for architectural heritage preservation in Québec.
1000 De La Gauchetière receives LEED-EB: O&M
certification and an Écolectrique award
Following an extensive two-year process, 1000 De La Gauchetière, in Montréal,
was awarded LEED-EB: O&M certification in 2010. It was the second building
in Canada to be thusly recognized by the U.S. Green Building Council (USGBC),
the first being Centre Bell in Montréal, and is currently the largest building in
the country to hold this distinction. Soon afterward, 1000 De La Gauchetière
was presented with an Écolectrique award by Hydro-Québec, in April 2010, for
its successful efforts in reducing its energy consumption by over 5%.
Renaissance Tower receives highest LEED
certification
In 2010, Renaissance Tower, in which SITQ owns a 49% interest, received
LEED-EB: O&M (Existing Buildings: Operations & Maintenance) certification at
the Platinum level – the highest rating awarded under the LEED system. This
speaks to the excellent environmental performance of this property located
in Sacramento, California. Renaissance Tower is the second multi-tenant
Platinum recipient and one of only 31 LEED-EB Platinum properties in the
world.
A triple victory for Wachovia Center: LEED, TOBY
and Energy Star
Wachovia Center, a property in which SITQ holds a 50% stake, achieved
Gold-level certification under the LEED-EB: O&M program in 2010. It is the
third recipient of this prestigious distinction in the Tampa Bay area and the
10th in Florida. The year also brought more good news in the form of a TOBY
(Building of the Year) Award from BOMA (Building Owners and Managers
Association) in the 250,000 to 500,000 square feet category, in recognition
for Wachovia Center’s exceptional quality and management.
33 Arch Street in Boston twice honoured
After receiving LEED-EB: O&M Gold-level certification in April 2010, 33
Arch Street in Boston, in which SITQ holds a 48.5% interest, received a
TOBY Award in the 500,000 to 1 million square feet category from BOMA.
Both honours underscore the remarkable achievements made over the years
by this property, which currently ranks as one of the most environmentally
responsible in the U.S.
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1000 De La Gauchetière Ouest, Montréal
AWARDS AND CERTIFICATIONS
EUROPE:
GREEN BUILDINGS,
STILL AWAITING CERTIFICATION
B Building, Paris
In North America, Energy Star and LEED
certification programs have been in place for
Pre-certified LEED Platinum property in Calgary
Eighth Avenue Place, a 49-storey office tower in Calgary, was recently precertified LEED-CS (Core & Shell) Platinum. Co-owned by SITQ (33.3%), this
property, currently under construction, will be the first skyscraper (> 1 million
square feet) to receive this level of certification in Canada, and the third in
North America. Among the design elements that led to this recognition from
the USGBC are the property’s revolutionary HVAC system and its immense
green roof (which, at 30,000 square feet (2,780 m2), will be Canada’s largest).
A first Pierre d’Or Immobilier Durable award
presented by SITQ in France
At the 12th annual Pierres d’Or awards, an event that brings together France’s
biggest names in real estate, SITQ sponsored and presented the first Pierre
d’Or for sustainable real estate. This new award, which recognizes exceptional
achievement by a company or individual in promoting sustainable development
in the French real estate industry, was given to Philippe Pelletier, a housing
expert and an active supporter of the Grenelle Building Plan, a government
program designed to assess and reduce energy consumption in buildings
throughout France. The award was presented by Méka Brunel, Executive Vice
President, Europe, who took advantage of the opportunity to stress SITQ’s
commitment to sustainability in Europe and in other markets where we are
present.
Third SITQ Award of Excellence presented in
Montréal
For the third year in a row, SITQ was on hand to present the SITQ Award of
Excellence as part of the Montréal Architectural Heritage Campaign (OPAM),
in collaboration with the Ville de Montréal and Héritage Montréal. The honour
recognizes the exceptional contributions of an individual or organization toward
protecting Montréal’s built heritage. This year it was given to Maurice Forget,
former president of Héritage Montréal and the driving force behind numerous
initiatives aimed at highlighting the historical value of the city’s various
neighbourhoods. Mr. Forget is also the founder of OPAM, which has for 20
years been encouraging the public to learn more about the rich architectural
tapestry of the Island of Montréal and the need to ensure its maintenance and
longevity, while respecting its original style and character.
years. In Europe, however, the equivalents
of these standards (e.g., HQE, which stands
for “Haute Qualité Environnementale”) are
relatively new to the scene, at least as far as
existing buildings are concerned. This – along
with the lack of consistency among the various
systems – is the reason that none of SITQ’s
fully or partially owned properties in Europe
have been environmentally certified. However,
most can still rightly claim eco-efficient status,
which will eventually be confirmed when further
progress is made on the certification front. In
Paris (La Défense), Tour Prisma (42% interest
SITQ) will be compliant with the 2020 energy
consumption target identified in the Grenelle
II environmental laws as soon as renovations
have been completed. The property is also
currently in the midst of the HQE and LEED
certification processes for existing buildings.
Furthermore, we have signed “green leases”
with two of our tenants, which will allow us
to exchange information, implement shared
energy-saving measures and adopt other ecoresponsible practices.
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AWARDS AND CERTIFICATIONS
Environmental Certifications
Level of certification
LEED-CERTIFIED PROPERTIES
The Renaissance Tower, Sacramento
LEED-EB O&M Platinum
Wachovia Center, Tampa
LEED-EB O&M Gold
33 Arch Street, Boston
LEED-EB O&M Gold
One Boston Place, Boston
LEED-EB O&M Gold
1000 De La Gauchetière, Montréal
LEED EB O&M
Centre CDP Capital, Montréal
LEED-EB Gold
1775 Pennsylvania Avenue, Washington, D.C.
LEED-CS
Eighth Avenue Place, Calgary (development project)
Pre-certified LEED-CS Platinum
Two Newport, Seattle (development project)
Pre-certified LEED-CS Silver
Summit III, Seattle (development project)
Pre-certified LEED-CS Silver
BOMA BEST–CERTIFIED PROPERTIES
Centre CDP Capital, Montréal
Level 4
Place Ville Marie, Montréal
Level 3
Centre de commerce mondial de Montréal, Montréal
Level 3
1000 De La Gauchetière, Montréal
Level 3
Sun Life Building, Montréal
Level 3
York Mills Centre, Toronto
Level 3
Steeles Tech Campus, Toronto
Level 3
Édifice Price, Québec City
Level 2
Édifice de la Haute-Ville, Québec City
Level 2
Édifice Mérici, Québec City
Level 2
55 University, Toronto
Level 2
1075 West Georgia, Vancouver
Level 2
TD Square, Calgary
Level 1
Calgary Eaton Centre/TD Canada Trust Tower, Calgary
Level 1
Bentall Centre I–IV, Vancouver
Level 1
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SITQ / ACTIVITY REPORT AND
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AWARDS AND CERTIFICATIONS
Environmental Certifications
Level of certification
ENERGY STAR–CERTIFIED PROPERTIES
Commonwealth Tower, Arlington
Energy Star
Five Newport Corporate Center, Bellevue
Energy Star
33 Arch Street, Boston
Energy Star
One Boston Place, Boston
Energy Star
One Rock Spring, Maryland
Energy Star
388 Greenwich Street, New York
Energy Star
Reston Crossing I, Northern Virginia
Energy Star
Reston Crossing II, Northern Virginia
Energy Star
Doubletree Portland, Portland
Energy Star
The Renaissance Tower, Sacramento
Energy Star
US Bank Center, Seattle
Energy Star
Wachovia Center, Tampa
Energy Star
Perimeter Center, Richmond
Energy Star
900 19th St. (Presidential Plaza), Washington, D.C.
Energy Star
1201 F Street, Washington, D.C.
Energy Star
1255 23rd Street (Floyd D. Akers Building), Washington, D.C.
Energy Star
1717 Pennsylvania Avenue, Washington, D.C.
Energy Star
1919 Pennsylvania Avenue, Washington, D.C.
Energy Star
2550 M Street, Washington, D.C.
Energy Star
International Square (3 buildings), Washington, D.C.
Energy Star
GREEN KEY–CERTIFIED HOTELS
Fairmont The Queen Elizabeth, Montréal
4 keys
Fairmont Le Château Frontenac, Québec
4 keys
Fairmont Château Laurier, Ottawa
4 keys
The Westin Ottawa, Ottawa
4 keys
Delta Toronto East, Toronto
4 keys
Hilton Toronto, Toronto
3 keys
The Fairmont Royal York, Toronto
4 keys
The Westin Harbour Castle, Toronto
4 keys
The Westin Calgary, Calgary
3 keys
The Westin Edmonton, Edmonton
4 keys
The Fairmont Winnipeg, Winnipeg
4 keys
The Fairmont Hotel Vancouver, Vancouver
4 keys
The Fairmont Waterfront, Vancouver
4 keys
The Westin Bayshore Vancouver, Vancouver
4 keys
The Fairmont Empress, Victoria
4 keys
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SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
REPORT
CONTEXT
AND PARAMETERS
Timeframe and scope of report
About the data in the environment section
For the first time, this social responsibility report has been fully integrated into
the SITQ activity report. It covers the period from January 1 to December 31,
2010.
The data pertaining to the environmental performance of our assets combines
information from our properties under management with figures provided
by our partners. The number of assets covered by the data is presented in
each table. The quantitative data we received for our Hotels, Apartments and
Retirement Housing portfolio applies to a limited number of properties, but we
are determined to broaden the available documentation in this area in future.
The social responsibility report has been developed in accordance with the
guidelines of the Global Reporting Initiative (GRI). It therefore reports on social,
environmental and economic indicators put forward by the GRI, specifically
28 indicators related to profile and strategy and 15 performance indicators in
the following categories: economic (EC), environmental (EN), labour practices
(LA) and society (SO).
Based on GRI guidelines, SITQ has achieved Level C with this first-time
application of this sustainability reporting standard.
Relevance
We have examined all the indicators to determine their relevance to SITQ’s
situation as well as their relevance to our real estate assets.
Stakeholders
In order to clearly understand the priorities and concerns of SITQ stakeholders,
we have used a diagnostic tool prepared in 2008 by the Deloitte consulting
firm, which interviewed all of the Company’s main stakeholders: employees,
shareholders, business partners, tenants and other key groups.
While we were preparing this report, we also consulted with a number of
stakeholders to find out how they perceived SITQ’s activities and the content
of the social responsibility report. In 2011, we hope to implement formal
communication procedures to establish an ongoing dialogue with these
stakeholders.
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SITQ / ACTIVITY REPORT AND
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For greenhouse gas (GHG) emissions, we followed the guidelines issued by
the Real Property Association of Canada (REALpac). In other words, we have
reported 100% of the emissions produced by our properties under management
in Québec, for which we have operational control, as well as a proportional
percentage, based on our equity ownership, of those produced by other
properties. Category 1 and 2 emissions are included in the data, except in the
case of Level 1 emissions related to transportation, given the lack of available
information. Data is presented in tonnes or kilograms of CO2 equivalent. These
figures have been calculated by Cofely, our energy management consultants
for the properties under our management. For properties outside of Québec,
the data has been compiled by Planetair, an organization specializing in GHG
reporting, based on information submitted by SITQ partners. GHG emission
factors have been derived from various sources, depending on the location of
each property (i.e., GHG Protocol, eGRID, Environment Canada).
Energy consumption has also been reported proportionally to ownership
interest, except for assets for which we fulfill a property management role. In
cases where tenants administer their own energy invoices, the surfaces of the
corresponding buildings have been omitted from the calculations.
Past figures related to the recycling of paper, paperboard, glass, plastic and
metal in our properties have been adjusted since last year’s report.
For any questions or comments on the contents of this report, please write to
info@sitq.com.
REPORT CONTEXT AND PARAMETERS
GRI
INDICATOR
DESCRIPTION
PAGES
NOTES
STRATEGY AND PROFILE
1.1
Statement from senior decision-maker about the relevance of
sustainability to the organization
3
2.1
Name of organization
Profile
2.2
Primary brands, products and/or services
Profile
2.3
Operational structure
61
2.4
Location of headquarters
Inside back cover
2.5
Countries of operation
Profile
2.6
Nature of ownership and legal form
Inside back cover
2.7
Markets served
Profile
2.8
Scale of organization
Profile, 1, 6, 7
2.9
Significant changes during reporting period
2.10
Awards received during reporting period
54, 55
3.1
Reporting period
58
3.2
Date of most recent previous report
3.3
Reporting cycle
3.4
Contact point for questions
58
3.5
Process for defining report content
58
3.6
Boundary of report
58
3.7
Limitations on report scope
58
3.8
Basis for reporting on joint ventures and subsidiaries
58
3.10
Explanation of any restatements
58
3.11
Significant changes from previous reports
50, 58
3.12
GRI index
59
4.1
Governance structure of the organisation
34, 60, 61
4.2
Indicate whether the Chair of the Board is also an executive officer
60, 61
4.3
Number of independent administrators or non-executive members
60, 61
4.4
Mechanisms for shareholders and employees to provide
recommendations
34
4.14
List of stakeholders engaged by the organization
58
4.15
Basis for identification and selection of stakeholders
58
Economic performance
1, 6, 7, 32
Market presence
32
EN1
Materials
42
EN3, EN4, EN7
Energy
41
EN8
Water
42
EN16, EN18
Emissions, effluents and waste
41, 45
EN22
Waste and recycling
43
EN28
Compliance
34
Profile is on the inside front cover
No substantial change
Published in April 2010
Annual
ECONOMIC
EC1
EC6
ENVIRONMENTAL
Paper and electronic equipment
Recycling is the only waste management method
for which we have data for a significant number
of properties.
LABOUR PRACTICES, SOCIAL RELATIONS AND DECENT WORK
LA1
Employment
32, 33
LA7
Occupational health and safety
38
LA10
Training and education
37
Public policy
35
SOCIETY
SO5
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SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
BOARD OF
DIRECTORS AND
MANAGEMENT
TEAM
BOARD OF
DIRECTORS
William R.C. Tresham
President and Chief Executive Officer
SITQ
Frédérick Castonguay
Senior Investment Manager, Pension Investments
Rio Tinto
Claude Caty
Senior Manager, Investments
La Fiducie globale des régimes de retraite
de la Société de transport de Montréal
Claude Dalphond
Corporate Director
Daniel Fournier
Chairman of the Board, SITQ
Executive Vice President, Real Estate
President, Real Estate group
Caisse de dépôt et placement du Québec
Sylvain Gareau
Vice President
Desjardins Group Pension Plan
Francine Harel-Giasson
Corporate Director
Karen Laflamme
Senior Vice-President, Real Estate
Caisse de dépôt et placement du Québec
Alain Lapointe
Corporate Director
Mario D. Morroni
President and General Manager and Chairman of the Board
Association de bienfaisance et de retraite des policiers
et policières de la Ville de Montréal
Jean Pinard
Corporate Director
Michel Sanschagrin
Corporate Director
Michel Toupin
Managing Director
Fonds communs de placement des régimes de retraite de l’Université Laval
Montreal Herald, Montréal
60/
SITQ / ACTIVITY REPORT AND
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BOARD OF DIRECTORS AND
MANAGEMENT TEAM
TABLE OF CONTENTS
Message from the President & CEO and Chairman of the Board
Financial profile
Office
/08
/06
Hotels, apartments and retirement housing
/26
Social responsibility report /30
Economy and governance /32
Employees /36
Environment /40
Community and knowledge /46
Tenants /50
Awards and certifications /54
Report context and parameters /58
/02
/18
EXECUTIVE
OFFICERS
Real estate investment funds
Board of Directors and management team
1
2
1. William R.C. Tresham
President and Chief Executive Officer
2. Adam Adamakakis
Executive Vice President, Eastern Region, Canada/U.S
3. Méka Brunel
Executive Vice President, Europe
/60
4. Michel Cyr
Senior Vice President, Development
3
PROFILE
4
Since 1984, SITQ has upheld a tradition of excellence that has made it a leader
in the North American and Western European real estate industries. Founded
by the Caisse de dépôt et placement du Québec with $9 million in invested
capital, SITQ today holds a $17.6-billion portfolio. Assets include prestigious
office properties, business parks, hotels, apartment buildings and retirement
residences in major cities in Canada, the United States, France, the United
Kingdom and Germany, as well as interests in several real estate funds that
invest in various markets around the world.
5. Denis Epoh
Senior Vice President, Investments
6. Rita-Rose Gagné
Senior Vice President and General Counsel
7. Pierre Lefebvre
Senior Vice President, Human Resources and Shared Services
8. Marc Lemaire
Senior Vice President, Real Estate Investment Funds and Financing
Backed by its expert team of 432 employees, the Company owes its success to
its solid investment and asset management know-how, its proven insight into
the real estate development sector and the rigour and quality of its property
management.
5
SITQ’s Office Division draws strength and stability from its shareholders, namely,
the Caisse de dépôt et placement du Québec (which owns a 90.6% interest), the
Desjardins Group Pension Plan, Alcan (Canada) Master Trust, the Association de
bienfaisance et de retraite des policiers et policières de la Ville de Montréal, the
Fonds commun de placement des régimes de retraite de l’Université Laval, the
Régime de retraite de la Société de transport (1992) and the Régime de retraite
de la Société de transport de Montréal (Syndicat de transport de Montréal-CSN).
The Hotels, Apartments and Retirement Housing Division and the Real Estate
Investment Funds Division are wholly owned by the Caisse.
6
9. Arthur Lloyd
Executive Vice President, Western Region, Canada/U.S.
10. Louiselle Paquin
Chief Financial Officer
11. Tony Roy
Vice President, Portfolio Management
7
8
9
10
SITQ has its head office at the Centre CDP Capital in Montréal and two business
offices in Calgary and Paris. It enjoys a Canada-wide presence through its
interest in Bentall Kennedy. SITQ also has offices in Québec City (Canada),
Brussels (Belgium), Luxembourg, New Delhi (India) and Ebene (Mauritius).
11
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SITQ / ACTIVITY REPORT AND
SOCIAL RESPONSIBILITY REPORT 2010
Eighth Avenue Place, Calgary
ACTIVITY
REPORT
AND SOCIAL RESPONSIBILITY REPORT
HEAD OFFICE
CENTRE CDP CAPITAL
1001 Square-Victoria Street
Montréal, Québec
H2Z 2B1
514 287-1852
1 888 599-IMMO
ACTIVITY REPORT AND SOCIAL RESPONSIBILITY REPORT
CANADIAN OFFICES
4, Place Ville Marie
Suite 600
Montréal, Québec
H3B 2E7
514 861-9393
2010
1175-324 8th Avenue SW
Calgary, Alberta
T2P 2Z2
403 539-2229
EUROPE
SITQ SAS
30, avenue George V
75008 Paris, France
(33) 1 56 69 25 30
SITQ PATRIMONIAL S.A.
125, avenue Louise
Bruxelles, Belgique 1050
(32) 2 644-4165
ASIA
SITQ INDIA PRIVATE LIMITED
D18, First Floor
Defence Colony
New Delhi 110 024
India
(91) 11 4602 7344
SITQ MAURITIUS ADVISORY
SERVICES
IFS Court
28, Cybercity
Ebene, Mauritius
(230) 467 3000
EUROSITQ FINANCES S.A.
25A, boulevard Royal
L-2449 Luxembourg
Luxembourg
(352) 27 62 06 93 41
La Défense, Paris
Published by Communications, Public Affairs and Marketing
Senior Vice Presidence – Human Resources and Shared Services
Writers: Sarah Marchand and Gary Lawrence
English translation: Shonda Secord
Graphic design and production: LXB Communication Marketing
Printing: L’Empreinte
© Copyright SITQ, 2011.
ISSN 1492-3041 (Activity report and Social responsibility report)
This document is also available online at sitq.com.
Le document est aussi disponible en français.
SITQ.COM
2010
To obtain additional copies or share your comments regarding this document, please
contact us at info@sitq.com.