ANNU AL REVIEW - Amazon S3 · ANNU AL REVIEW STRATEGIC GROUP | ... of two multi-family residential projects and commencement of construction on three others. We also acquired three

A N N U A L R E V I E W

STRATEGIC GROUP | “Creating value others can’t by seeing what others don’t.“

Strategic Group owns, manages and develops office, retail and apartment properties across Canada. Our company is fully integrated,

which means we own, manage, lease, develop and re-develop our portfolio on our own, for ourselves. We have national reach with real

estate ownership from Vancouver Island to Atlantic Canada. Our plan is to own real estate for the long term, which is why we focus on

sustainability and recurring revenue. Our approach is unconventional and creative while delivering on the fundamentals of real estate.

This approach is reflected in our Mantra, “Creating value others can’t by seeing what others don’t.” Real estate is our focus, but we own

businesses in other industries including: construction, building services, oilfield services, hospitality, pet care, agriculture, technology,

and corporate finance.

W H O W E A R E

Strategic Centre, Calgary Alberta

TA B L EO FC O N T E N T S03 OUR BUSINESS

04 SOME OF OUR ACCOMPLISHMENTS IN 2015

06 LETTER TO STAKEHOLDERS

08 HISTORICAL GROWTH

12 OUR REAL ESTATE

18 GROWTH STRATEGY

20 COMMITMENT TO OUR TENANTS

22 OUR PROJECTS

26 LEARNING, GROWING AND HAVING FUN

28 COMMUNITY

32 COMMERCIAL PROPERTIES LIST

34 RESIDENTIAL PROPERTIES LIST

Front Cover: 20/20, 4th Ave SW Calgary

STRATEGIC GROUP | “Creating value others can’t by seeing what others don’t.”4

Leasing Playground, Strategic Centre

Reception, Strategic Centre Coffee Bar, Strategic Centre

“Creating value others can’t by seeing what others don’t.” 5

> DIVERSIFIED GEOGRAPHICALLY AND ACROSS ASSET CLASSES

> 3.2 M SF OFFICE PORTFOLIO

> 1.3 M SF RETAIL PORTFOLIO

> 2 M SF RESIDENTIAL PORTFOLIO

> 0.4 M SF UNDER CONSTRUCTION

> PRIVATELY HELD COMPANY WITH MORE THAN 350 TEAM MEMBERS

> $580 M DEVELOPMENT PIPELINE

> EXPERIENCED LEADERSHIP TEAM

O U R B U S I N E S S

152 PROPERTIES

$1.5 B ASSETS

6.9 M SFLEASABLE AREA

“Creating value others can’t by seeing what others don’t.”6

> ACHIEVED BOMA BEST CERTIFICATION FOR 50 BUILDINGS IN THE CALGARY OFFICE PORTFOLIO

> CONTINUED GROWTH IN OUR RESIDENTIAL PORTFOLIO WITH OPENING OF M17 AND 1410 INGLEWOOD IN CALGARY

> COMPLETED STABILIZATION OF 85 BUILDINGS IN STRATEGIC GROUP ATLANTIC RESIDENTIAL PORTFOLIO

> IMPLEMENTEDSELF-FUNDINGSUSTAINABILITYAND ENERGY SAVINGS PROGRAM

> RE-INVESTED$20 M IN OUR EXISTING REAL ESTATE THROUGH CAPITAL AESTHETIC UPGRADES AND COMMON AREA IMPROVEMENTS

> DEVELOPED NEW AND CREATIVE LEASING STRATEGY IN RESPONSE TO A CHALLENGING REAL ESTATE MARKET

> CONDUCTEDCURB-TO-DOORAUDITACROSSPORTFOLIO AND MADE CHANGES TO IMPROVE THE TENANT EXPERIENCE

SOME OF OURACCOMPLISHMENTSIN 2015

“Creating value others can’t by seeing what others don’t.” | STRATEGIC GROUP 7Barron Building, Calgary, AB


Welcome to the first Strategic Group Annual Report. This rep-

resents another step in our ongoing commitment to best-in-

class reporting and communication with our stakeholders:

tenants, employees, lenders, vendors and the community. As

you peruse this report, I encourage you to see it through the

lens of our values around business, people and community, as

these are what drive our strategic initiatives.

Strategic Group was formed in 2001 and has grown to become

one of Canada’s largest privately held real estate organiza-

tions. Beginning in the late ‘90s, my professional interest and

energy moved increasingly from practicing law to my involve-

ment in the financing of companies—especially early-stage

startups. While working on these start-up ventures, I had a

need for office space which prompted my entry into commer-

cial real estate and the inception of Strategic Group. In fact, I

continue to occupy the same office and parking stall that I did

when we first opened Strategic Centre at 630 8th Avenue SW.,

Calgary in 2001.

Strategic Group was founded as a way to diversify into com-

mercial real estate. The company was started with two prop-

erties. By 2008, Strategic Group had expanded its portfolio to

own and manage more than 60 office, residential and retail

properties. Today, Strategic Group has over 150 properties and

it continues to grow and expand across Canada.

D E A R S T A K E H O L D E R S

“Creating value others can’t by seeing what others don’t.” | STRATEGIC GROUP 9

RIAZ MAMDANICEO, Strategic Group

O U R VA L U E SBUSINESSGROWTH, SUSTAINABILITY & LONGEVITY

COMMUNITYIMPACT, PRIDE & LEGACY

PEOPLELEARNING, GROWING & HAVING FUN

As an Alberta-based owner, developer and manager of real

estate, 2015 was not without its challenges. There are, how-

ever, many reasons to be optimistic. The headlines across our

national newspapers often omit the reality that many sectors of

the Alberta economy are thriving and that many segments and

asset classes of Alberta real estate are significantly outperform-

ing the AA class downtown Calgary office space that struggled in

2015. I remain bullish on Canada and on Alberta. This is reflected

in our development pipeline of over $500 M, as well as our 2015

development activity in Alberta. This included the completion

of two multi-family residential projects and commencement of

construction on three others. We also acquired three land posi-

tions just north of Calgary and in Edmonton which will also be

developed for multi-family rental residences.

At Strategic Group, we are focused not only on preparing for

a prolonged downturn, but also on positioning ourselves for

a recovery. This means sticking to the fundamentals of real

estate, improving the tenant experience and an aggressive,

updated approach to leasing and reinvestment in our real

estate. Our creative and unconventional approach is reflected

in our mantra of “Creating value others can’t by seeing what

others don’t.” Our national reach, our growing residential

portfolio and minimal exposure to downtown Calgary office

space, means we are well positioned for growth.

I am very proud of everything we have accomplished over the

last 15 years at Strategic Group. One of my priorities over the

past few years has been to build a highly qualified and capa-

ble leadership team to take the company to the next level. Our

senior management group boasts impressive experience in the

real estate industry. I am looking forward to seeing what we

can accomplish together in the years to come.

Riaz Mamdani, CEO Strategic Group


MI

LL

IO

NS

O

F

SF

> RAPID GROWTH OVER THE LAST DECADE

> SUSTAINABILITY

> LONGEVITY

H I S T O R I C A LG R O W T H

P O R T F O L I O G R O W T H

Residential

Retail

Office

1990s – 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016* 2017* 2018*2010

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

S T R A T E G I C G R O U P Riaz Mamdani forms Strategic Group to pursue his interest in real estate and moves into Strategic Centre

S A LT L A K E C I T Y W I N T E R O LY M P I C SCanadian men’s hockey team wins first Olympic gold medal since 1952

S H E L B O U R N E P U R C H A S ERiaz Mamdani acquires his first real estate asset in 1998for 1.4M

C R E D I T C R I S I SLehman Brothers files for bankruptcy

P C P A R T YStephen Harper becomes leader of PC party

A L B E R T A C E N T E N N I A L Alberta celebrates its 100 years of confederation.


*P R O J E C T E D G R O W T H

1990s – 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016* 2017* 2018*2010

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

S T R A T E G I C G R O U P Atlantic Canada acquisition

A L B E R T A F L O O D SStrategic Group’s emergency

response teams work around the clock to restore occupancy

W O R L D ’ S T A L L E S T B U I L D I N GBurj Khalifa opens in Dubai, UAE

S T R A T E G I C G R O U PM17 and 1410 Inglewood residences open

B A R R O N B U I L D I N GBarron Building hosts Beakerhead, a unique scientific community experience

P E A C E B R I D G EOpening of a unique pedestrian bridge designed by

Spanish architect Santiago Calatrava, in Calgary, Alberta

20/204TH STREET SW, CALGARY, ABDEVELOPED, OWNED AND MANAGED BY STRATEGIC GROUP.


Our portfolio has a national presence with core assets in Calgary,

Edmonton, British Columbia and Atlantic Canada. At the end

of 2015, Strategic Group’s portfolio reached a 185% compound

annual growth rate since our first acquisition in 1998. We contin-

ually seek to create long-term value across our portfolio through

our committed management team, effective leasing strategy,

capital investment in our assets and strategic acquisitions.

Strategic Group owns and manages a

diversified 6.9 million square foot portfolio

of office, retail, and residential real estate.

OUR REAL ESTATE

OFFICE

Strategic Group’s office portfolio is primarily Class B space

in Calgary and Edmonton. As a cyclical market by nature,

the Alberta office segment was not without its challenges in

2015. The sudden drop in commodity prices had a pronounced

impact on the commercial real estate market, especially

Class AA downtown core office buildings. Strategic Group

has continued to maintain over 90% occupancy across its

office portfolio through the recent economic downturn. This

is due, in part, to our focus on Class B small suite suburban

office space, which outperformed downtown Class AA space

by a wide margin in 2015. At the same time, we implemented

a creative and unconventional leasing approach that further

strengthened occupancy across our portfolio.

Energy and related companies were the primary occupiers

of Class AA office space in Calgary and, during 2015, these

tenants were forced to downsize. As a result, Calgary has

seen some of the highest downtown vacancy rates since the

1980’s. With only 10% of our real estate portfolio comprising

of downtown Calgary office, Strategic Group is positioned to

“OUR BUSINESS

MODEL IS TO

OPTIMIZE ALL

FORMS OF

RECURRING

REVENUE.”

– RIAZ MAMDANI, CEO

S T R A T E G I C P O R T F O L I O M I XB A S E D O N G L A

T O T A L 6 , 8 8 5 , 3 7 9 S F


MINIMAL RISK DUE TO MODEST ROLLOVER AND HIGH RETENTION RATE

C A L G A R Y O F F I C E R O L L O V E R

withstand changing market trends and economic cycles. Our

Class B tenants are generally leaner and less likely to down-

size office space. Our buildings have a theme of “small suite

office space” with 68% of our tenants occupying 5,000 SF

or less. Our tenant retention remains strong because large

downtown Class AA office buildings that make up most of

the Calgary vacancy are not suitable for many of our tenants.

Our office rollover is also relatively modest in 2016, affording

additional protection in the event of a prolonged downturn.

As a landlord in a commodity based economy, we under-

stand the cyclical nature of the market and both the risks and

opportunities that arise from it. Strategic Group is continually

reinvesting in our office portfolio to optimize our cash flows

during the downturn and to position our office space to bene-

fit from the revenue generating opportunities that come with

a recovery. We are proactively building our suites, improving

our common areas and exteriors and have implemented a

retooled leasing approach, all of which contribute to provid-

ing a better tenant experience.

Finance, Strategic Centre

30%

20%

10%

0%

2016 2017 2018 2019 2020


RETAIL

Strategic Group’s retail portfolio is comprised of approximately

1.3 M SF of rentable space in Calgary, Edmonton and Duncan.

Our retail portfolio varies from suburban strip malls and office

building amenities to large retail centers with national anchor

tenants who provide diversified cash flows. Calgary’s retail mar-

ket has remained resilient over 2015 and as a result, our portfolio

continues to perform strongly. Over the past 15 years, we have

achieved a cumulative average growth rate of 30% in our retail

rentable area. We plan to continually pursue new and innovative

retail investment opportunities and work with tenants to create

long lasting relationships that will diversify and balance risk within

Strategic Group’s real estate portfolio.

R E T A I L P O R T F O L I O G E O G R A P H I C M I X

T O T A L R E T A I L S P A C E : 1 , 2 6 0 , 2 9 1 S F

Calgary, AB802,047 SF63%

Edmonton, AB96,309 SF8%

Duncan, BC361,935 SF

29%


In 2014, Strategic Group acquired the Duncan Centre

in Duncan, British Columbia, realizing value by consoli-

dating ownership of three under-managed retail assets

with vacancy and renewal issues. The 361,935 SF con-

solidated retail centre is made up of three properties:

Duncan Mall, Duncan Plaza and Duncan Village.

DUNCAN CENTRE

CASE STUDYSince the acquisition, Strategic Group has achieved the following:

> Secured conventional mortgage debt to replace mezzanine

loans in place at the time of acquisition

> Established a strong working relationship with the

Cowichan Tribe from whom the land is leased

> Rectified numerous financial, legal and procedural defaults

negatively impacting the land leases

> Renewed high profile tenants such as Superstore, Staples,

Starbucks and Dollar Tree

> Completed initial planning for a significant “de-malling”

project that will create 30,000 SF of premium space for

additional national retailers

> Leased 9,600 SF in a new transaction with FabricLand

> Completed over $400,000 in capital projects increasing the

asset’s appeal and value

> Improved the overall Duncan Centre reputation within the

Cowichan Valley and surrounding communities

MALL259,268 SF

VILLAGE72,665 SF

PLAZA30,002 SF

The Duncan acquisition increased Strategic Group’s retail port-

folio by 42% while expanding its operating footprint further

west into British Columbia and capturing new cashflow from

strong anchor tenants.

Duncan Village, Duncan, British Columbia Duncan Mall, Duncan, British Columbia


ATLANTIC CANADACASE STUDY

RESIDENTIAL

Strategic Group owns and operates 90 purpose-built, multi-family

buildings comprising 2,312 units in Calgary, Edmonton and Atlan-

tic Canada. Our residential suites cover just over 2 M SF and repre-

sent 32% of our total portfolio.

In 2015, Strategic Group completed the development of M17 and

1410 Inglewood. M17 is a four-storey, wood-frame, building com-

prising 57 units with ground floor retail and amenities, located on

Calgary’s trendy “uptown 17th avenue” in the vicinity of boutique

shops, fine restaurants, lively lounges and business offices. 1410

Inglewood is a four-storey, wood-frame building comprising 54

rental units with ground floor retail and amenities. Once Calgary’s

original downtown, historic Inglewood was awarded “Canada’s

Greatest Neighborhood for 2014.” As Calgary’s rental market

grows, Strategic Group has identified and invested in some of the

most desirable locations in the city.

Strategic Group started constructing Centro in August 2015 and

anticipates completion by September 2016. Situated in the inner-

city community of Tuxedo Park, Centro is close to parks, schools,

shopping malls and is just north of the downtown core.

A TURN-AROUND STORY

In 2014, Strategic Group acquired a portfolio of 81 buildings and

three residential land development sites in Atlantic Canada. At

the time, the portfolio of 1,745 units faced foreclosure, vacancy

of nearly 20%, and significant issues with property management

and tenant retention. Leveraging our creative and unconventional

approach, the portfolio was repositioned and vacancy has been

reduced to 5.5% in Q1 2016.

While our Atlantic Canada portfolio is managed by a property

service provider, the company has growing in-house teams in Cal-

gary and Edmonton dedicated to residential leasing and property

management. With a growing percentage of our portfolio in the

residential sector, we have placed an increased importance on

solidifying the Strategic Group residential brand and providing

superb customer service to our tenants. Strategic Group’s resi-

dential properties host regular tenant appreciation events and

provide unique amenities such as roof-top patios, BBQs, outdoor

heated seating areas and fitness facilities. By offering well-main-

tained, amenity-rich buildings, Strategic Group creates a strong

sense of community among its residential tenants. By uncover-

ing real estate opportunities while understanding demographic

trends, we strive to achieve high retention across our residential

portfolio and offer great places to live.

In 2014, recognizing the risk as well as the opportunity to grow

our business reach nationally, Strategic Group took on the

challenge of adding 1,745 distressed units from Atlantic Can-

ada to its portfolio. Expanding to Atlantic Canada increased

our residential exposure by 75%. We now have 2,312 residential

units nation-wide.

NEW BRUNSWICK

23 buildings with 544 units

NOVA SCOTIA

58 buildings with 1,201 units

3 residential land development sites

Strategic Group’s goal for the Atlantic Canada portfolio was to

provide clean, safe and affordable housing for our tenants. Upon

acquisition, the portfolio was experiencing a high level of vacancy,

during which a significant portion of the vacant units were in a

“non-rent-ready” state. The project team improved occupancy

levels by renovating hundreds of vacant suites, upgrading the

common areas and addressing deferred maintenance issues. By

developing a strong marketing presence, we were able to increase

occupancy. By maintaining a thorough application process, we

were able to offer clean, safe and well-maintained rental environ-

ments. At acquisition in May 2014, the vacancy rate of the Atlantic

Canada portfolio was 19.5% overall. Through the continued suc-

cess of our program, vacancy was lowered to 7.9% in Q4 2015 with

vacancy decreasing to 5.5% in Q1 2016.


Q U A R T E R L Y V A C A N C Y New Brunswick Nova Scotia

Our Atlantic Canada portfolio has turned around and is now a stable and strong part of Strategic Group’s residential portfolio.

Missao, Calgary AB Lake Ridge, Spruce Grove AB


GROWTHSTRATEGYNotwithstanding fluctuating commodity prices and the cyclical

economy, Calgary’s population has grown in each of the past 25

years. The high quality of life, strong sense of community and

proximity to nature have continued to attract migration to the

city. Paradoxically, there has been a 22% decline in the number

of purpose-built residential rental units in Calgary since 2001;

a combination of condominium conversions and building tear-

downs. The rental market in Calgary has become underserved and

demand is expected to grow. Consumers are exhibiting less con-

fidence in the housing market and the decreasing condominium

and housing sales signal a shift towards stronger demand in the

rental market.

As a result of these trends we see significant opportunities

in the Alberta multi-residential sector. This is reflected in our

development pipeline comprising 11 properties and 1,749 resi-

dential units which together represent a financial commitment

of over $580 M.

In addition to completing M17 and 1410 Inglewood in 2015, Stra-

tegic Group broke ground on three new multi-family rental proj-

ects: Gateway, One-Six, and Centro. Centro is the first project to

receive approval for a five-storey, wood frame building from the

City of Calgary; a significant milestone in the development indus-

try. To further align ourselves with the residential opportunity in

Alberta, we acquired three major land holdings in 2015: Stony

Plain, Creekside, and Watt Road. These development sites will

pave the way for an additional 528 residential units in our portfolio

by 2018.

We are excited to watch our developments come to fruition and

further service Alberta’s multi-residential rental market. By 2019

we will have increased our portfolio to 4,061 residential units. We

are also constantly seeing opportunities for redevelopment of

existing assets, expansion of current properties, new construction

and acquisitions.

Improvement of our real estate has always been an important

part of Strategic Group’s growth strategy. We have found that by

reinvesting in our existing assets and holding them to the high-

est standard, we can retain our office and retail tenants especially

at a time of competitive leasing environments. Our Development

team is working towards having 15 aesthetic projects complete or

shovel-ready by the end of 2016.

Leasing Team Members, Strategic Centre


R E S I D E N T I A L P O R T F O L I OP R O J E C T E D G R O W T H

C U R R E N T / T O T A L 2 , 3 1 2 U N I T S 2 0 1 9 / T O T A L 4 , 0 6 1 U N I T S

Alberta

Nova Scotia

New Brunswick

Accounting Team Members, Strategic Centre


HIGHLIGHTS FROM 2015:

> Certified all 50 of our Calgary office buildings through the

BOMA Best program

> Introduced a retrofitting light program for reduction of energy

consumption

> Launched Energy Optimization Services, a self-funding

entity that will finance the capital cost of energy saving

initiatives in our buildings to improve the tenant experience

and lower operating costs

> Developed a five-year capital plan for large components of

mechanical systems throughout our portfolio in need of near-

term replacement

> Conducted regular curb-to-door audits for all properties to

improve the tenant experience

> Rolled out new recycling program in Calgary

> Launched an automated service request portal on

strategicgroup.ca to better respond to tenant service requests

Strategic Group is constantly evaluating all aspects of our

properties’ performance. Building architecture is reviewed for

opportunities to improve the position and performance of a

property. Interior and exterior finishes are assessed to ensure

they are modern, functional, safe and attractive. Operational

aspects of the building envelope, electrical systems, lighting

and HVAC systems are analyzed for opportunities to improve.

Strategic Group is constantly looking to integrate sustain-

ability and efficiency initiatives into our properties to reduce

our energy consumption, lower operating costs and improve

long term sustainability. We strive to ensure our buildings are

attractive, clean, safe, efficient and sustainable.

COMMITMENT TO OUR TENANTS

2015

FOCUS ON REINVESTING

IN OUR REAL ESTATE AND

IMPROVING THE TENANT

EXPERIENCE

While we have always endeavoured to provide our tenants

with the highest levels of service, this has taken on a height-

ened importance in 2015. We understand that tenants have

options in this environment and we are committed to con-

stant improvement of all aspects of the tenant experience.

This begins with instilling an “attitude of gratitude and spirit

of service” throughout the organization and especially among

our dedicated management team. Through our commitment

to a customer service model of property management and by

investing in our buildings where 35,000 people work, we are

able to maintain renewal rates and earn more than our fair

share of new lease transactions in the current environment.

SML Team Member, Strategic Centre

“Creating value others can’t by seeing what others don’t.” 23

ADDRESS

550 11th Avenue SW, Calgary AB

CHALLENGE

Exceptionally located 1980’s era building. Recessed lobby

entrance lacked street presence, exterior and interior finishes

dated.

SOLUTION

Metal cladding of lower levels to modernize and revitalize build-

ing identity, extend lobby towards sidewalk to improve presence,

new modern signage package, new exterior and interior finishes

to reflect updated appearance. Signage and exterior light fixtures

upgraded to LED to reduce energy consumption.

STATUS

Under construction, completion Summer 2016

INVESTMENT

$2.6 M

5/5: AESTHETIC UPGRADE

CASE STUDY

Before

After

After


PROJECTS COMPLETED IN 2015

CURRENT PROJECTS

1410 INGLEWOODStatus> CompleteDescription> The property is situated in the mixed residential/commercial district known as

Inglewood. Inglewood is located approximately 3 kilometers southeast of Cal-gary’s central business district.

> The development consists of a four-storey 54 unit multi-residential rental building with 15,997 SF of main floor retail.

AQUA – APARTMENTSStatus> Under construction: Started 2015> Expected completion: Fall 2016Description> The property is situated in Airdrie, 30 kilometers north of Calgary, and is part of

the greater Calgary metropolitan area.> The development will consist of a 159 unit multi-family rental building. A parkade

will form the foundation for the subject property.

AIRDRIE GATEWAY – TOWNHOMESStatus > Starting construction: 2016> Expected completion: Fall 2018Description> The property is situated in Airdrie, 30 kilometers north of Calgary, and is part of

the greater Calgary metropolitan area.> The development will consist of a 153 townhouse rental project.

CENTROStatus> Under construction: Started 2015> Expected completion: Fall 2016Description> The development will consist of a five-storey 69 unit rental apartment building

with 1,100 SF of food service retail.> Situated in Tuxedo Park, an inner-city residential community located just north of

the downtown core.

ENTROStatus> Under construction: Started 2015> Expected completion: Fall 2017Description> Entro in Stony Plain is a multi-family and townhome residential development that

consists of 116 residential units and 28 townhomes.> Located just 17 Kilometers west of Edmonton in Stony Plain, Entro is easily

accessible from both provincial highways 16 and 16A and is perfectly situated for commutes to and from the west end of Alberta’s capital city.

M17Status> CompleteDescription> The property is situated in the quality mixed residential/commercial district

known as Mission. Mission is located approximately 1 kilometer south of Calgary’s central business district.

> The development consists of a four-storey 57 unit multi-residential rental building with 8,700 SF of retail.


FUTURE PROJECTS

ONEStatus> Predevelopment and planning: Expected start 2016 > Expected completion: 2018Description> The proposed development is a 37-storey building, comprised of approxi-

mately 9,400 SF of retail space, and 399 residential units. > Currently the development is in conceptual design.> The development is situated in the heart of Calgary’s Beltline community on 10th

avenue and 1st street SE.

ONE SIXStatus> Starting construction: 2016> Expected completion: 2017Description> One Six is a proposed mixed-use residential and retail development that will

comprise retail space and 103 residential units.> The property is located in the Capitol Hill neighbourhood, in the northwest quad-

rant of Calgary. The property is located near SAIT Polytechnic, North Hill Shopping Centre and is a 10 minute drive to Bow River pathways.

34 AVENUEStatus> Predevelopment and planning: Expected start 2017 > Expected completion: 2018Description> The proposed development is a six-storey mixed-use retail and residential build-

ing, comprised of approximately 9,000 SF of retail space and 68 residential units. > Currently the development is in conceptual design.> The development is situated in the heart of Marda Loop which is centered on 33rd

and 34th Avenues SW in between Crowchild Trail and 19th Street SW in Calgary.

CREEKSIDEStatus> Predevelopment and planning: Expected start 2016> Expected completion: 2017Description> This property is located in Airdrie, 30 kilometers north of Calgary, and is part of

the greater Calgary metropolitan area.> The proposed development is a six-storey residential building, consisting of 96

residential units. > Currently the development is in design phases.

WATT ROADStatus> Predevelopment and planning: Expected start 2016> Expected completion: 2018 Description> The proposed development is a six-storey residential building, consisting of 278

residential units. > Currently the development is in design phases. > Watt Road Development is located within the Walter Lakes Neighbourhood in

Southeast Edmonton. The neighbourhood is bordered by 50th Street on the east, and 66th Street on the west, Ellerslie Road on the north and 25th Avenue SW on the South.

SHELBOURNE BUILDING – REDEVELOPMENTStatus > Predevelopment and planning: Expected start 2017> Expected completion: 2018Description> Mixed-use retail and residential building comprised of 12,700 SF of prime street-

front retail and approximately 110 residential units contained in a proposed eight-storey concrete building.

> Currently in conceptual design.> Located in the heart of 17th Avenue SW, Calgary’s premier inner city retail and

entertainment district.

VILLAGE SQUARE MALL – REDEVELOPMENTStatus> Predevelopment and planningDescription> Redevelopment of an existing enclosed shopping mall in northeast Calgary.> Repositioning of retail to a modern and sustainable format and addition of a 160

unit multi-family rental apartment building.> Currently in conceptual design.

TOTAL DEVELOPMENTBUDGET: $580M

ONE10TH AVENUE AND 1ST STREET SE, CALGARY, ABPREDEVELOPMENT AND PLANNING. EXPECTED START: 2016. EXPECTED COMPLETION: 2018


LEARNING, GROWING AND HAVING FUNA significant challenge with a company that grows at an

exponential rate is keeping up with that growth. As a result of

its profoundly fast growth, the company needed to become

more structured without losing its entrepreneurial approach.

Strategic Group was forced to address challenges such as

technology infrastructure, corporate governance, risk miti-

gation, accountability and transparency to its stakeholders

while retaining a creative and unconventional culture.

Over the last 10 years, Strategic Group has worked to lay a

foundation on which to build a strong and effective team

with significant experience in real estate. We have invested in

automation technologies that drove significant capacity into

the organization, adopted International Financial Report-

ing Standards (IFRS), layered in governance that addressed

significant risks, ensured regular communication with team

“WE WORK AS

A TEAM TO GET

THINGS DONE.

WE DRIVE TO

UNDERSTAND AND

LEARN AND WE

MAKE IT A PRIORITY

TO HAVE FUN

WHENEVER WE CAN. “

– RANDY FERGUSON, COO

Strategic Group’s Executive Team


MATTHEW HAMM

Resident Manager, New Brunswick

For his leadership and commitment to our tenants at one of our

multi-family residential buildings in New Brunswick.

MONTE ROMBOUGH

Supervisor, Building Operations

For spearheading an innovative solution to a maintenance issue.

SHUAI LIU

Senior Property Accountant, Real Estate Accounting

For his collaborative approach and support of his teammates during

the preparation of the 2014 financial statements.

NABEEL RAMJI

Manager, Portfolio Analysis, Strategic Atlantic and Real Estate Finance

For leading the Accessibility for All Albertans initiative which affects

how renovations and new buildings are meeting and exceeding

current building codes.

THE TEAM STRATEGIC AWARD IS

PRESENTED QUARTERLY TO AN

INDIVIDUAL WHO EXEMPLIFIES

OUR CORE VALUES. members and other stakeholders, all while working to pre-

serve the company’s creative and unconventional approach.

The bedrock of Strategic Group’s success is built on the strategy

of “Creating value others can’t by seeing what others don’t.”

Lead by the CEO, supported by the COO and CFO, the Exec-

utive Team has come together to develop a lifecycle business

plan for the repositioning, repurposing, and redevelopment

of all real estate assets. They are committed to doing this by

creating an inclusive environment where team members from

a wide variety of backgrounds are recognized and valued for

who they are and the unique perspective that they bring to

the work place. You are unlikely to find a more diverse work-

place in Calgary than Strategic Group. The company has three

clear value statements - Business (Growth, Longevity, Sus-

tainability), Community (Pride, Impact, Legacy), and People

(Learn, Grow, Have Fun). By committing to transparency in

clearly articulating each Team Member’s accountability, the

company continues to grow and witness dramatic improve-

ments in operating cost efficiencies, customer experience,

lender confidence and company reputation.

Having the opportunity to learn together and build a strong

culture of camaraderie and playfulness is important to the

philosophy of Strategic Group. In 2015, the Team Strategic

Award was created to recognize individuals who demon-

strate and exemplify our core values in an exceptional way.

The Executive Leadership Team selects a winner each quarter

from nominations submitted by Team Members. Winners are

rewarded with a gift for being creative and unconventional

and are recognized publicly in front of their peers.

Strategic Group’s Executive Leadership Team is committed to

maintaining an open door policy including hosting a monthly

Team Member BBQ on our rooftop patio with burgers cooked

by Strategic Group’s CEO, Riaz Mamdani. Having the opportu-

nity to come together is a large part of the culture at Strate-

gic Group, whether it is for St. Patrick’s day, a non-Valentines

Day or hosting a Halloween trick or treat in partnership with

Kids up Front and Make-A-Wish Foundation. The Team is

committed to learning, growing and having fun.


COMMUNITYIMPACT. PRIDE. LEGACY.

Strategic Group’s community values of impact, pride and legacy

means that we want to make a difference with our partnerships.

From getting Strategic Group Team Members excited by an ini-

tiative and having their pride grow as we support a project to the

point where we are able to see the impact it is making in our com-

munity; these are the things that Strategic Group evaluates when

we look at starting a partnership with a community group.

Here are a few of the organizations and programs that we

support:

Strategic Group’s chief executive, Riaz Mamdani, gave his name

in a three-year partnership agreement that saw the renaming of

the Calgary Opera Centre to the Mamdani Opera Centre in Octo-

ber, 2015. This commitment came about in an effort to keep the

Calgary Opera at its historical location while plans develop around

the Opera’s future new location. The Mamdani Opera Centre is

more than just a home for Calgary Opera. It is a community hub

that supports over 40 groups, such as Decidedly Jazz Danceworks,

Spiritus Chamber Choir, Red Deer Symphony and One Yellow Rab-

bit Theatre that utilize the Centre for rehearsal and event space

every year.

Strategic Group is a proud sponsor of Theatre Calgary’s Emerg-

ing Artist program as well as a stage sponsor for one of Cal-

gary’s most beloved outdoor events - Shakespeare by the Bow.

The 2015-2016 season features exciting productions like The

Crucible and the world premiere musical The Little Prince.

Strategic Group has proudly sponsored the Mayor’s Lunch for

Arts Champions since 2013 as the Champion Sponsor. The event

– held by Calgary Arts Development in conjunction with the May-

or’s office – was developed as a chance to expand the circle of Arts

Champions in Calgary and celebrate leaders in the business and

cultural industries. This year we paid tribute to the amazing work

that groups like Voltage Garage, the Calgary Opera and Theatre

Calgary do for our community.

Let’s Eat! was brought forward by a Team Member four years ago

and has since grown immensely. The week-long campaign takes

place the third week of June where Strategic Group works with its

tenants and the citizens of Calgary to collect non-perishable food

items in their building lobbies. In 2015 alone, Let’s Eat! brought in

more than 5,000 pounds of food for the Calgary Food Bank as well

as cash donations. 2015 also saw the expansion of the campaign to

Edmonton, where donations supported Edmonton’s Food Bank.

Similar to Let’s Eat!, Strategic Group utilizes their building lobbies

to collect gently-used winter clothing for the Project Warmth Soci-

ety of Alberta. The campaign runs for the full month of Novem-

ber where Calgarians are invited to drop off donations for those

in need. In 2015 – the campaign’s fourth running year – campaign

results more than doubled with a grand total of 12,500 individual

pieces of clothing. The Project Warmth Society of Alberta collects,

cleans, repairs and redistributes clothing to over 30 agencies, shel-

ters, families, and individuals.

As an organization, we respect and are proud of who we are and

what we stand for. We’re committed to giving back and improving

where we live and work through our continued support of the arts,

community programs and charitable organizations.

Riaz Mamdani, CEO Strategic Group and Bob McPhee, CEO Calgary Opera

Donations for the Calgary Food Bank Donations for Project Warmth

MISSAO & 18001800 4 ST SW CALGARY ABAPARTMENTS, OFFICES AND RETAIL SPACE OWNED AND MANAGED BY STRATEGIC GROUP


N A M E C I T Y P R O V I N C E U S E S F

CN Tower Edmonton Edmonton Alberta Office 293,121

Duncan Mall Duncan British Columbia Retail 259,268

1620 Calgary Alberta Office 217,751

Sundance Place II 1000 Calgary Alberta Office 171,422

Sundance Place Calgary Alberta Office 168,540

Petro Fina Calgary Alberta Office 162,110

Harley Court Edmonton Alberta Office 157,911

Place 9-6 Calgary Alberta Office 152,492

Midnapore Mall Calgary Alberta Retail 146,506

Blackfoot Centre Calgary Alberta Retail 145,642

20/20 Calgary Alberta Office/Retail 129,876

Avenida Place Calgary Alberta Retail 105,946

Macleod Place 2 Calgary Alberta Office 103,439

5/5 Calgary Alberta Office 95,707


Parallel Centre Calgary Alberta Office 81,145

Macleod Place 1 Calgary Alberta Office 80,671

Circle Square Edmonton Alberta Office 79,869

808 Calgary Alberta Retail 78,323

Willow Park Calgary Alberta Office 78,262

Mission Centre Calgary Alberta Office 76,410

Deerfoot Court Calgary Alberta Office 75,111

Duncan Village Duncan British Columbia Retail 72,665

First Street Plaza Calgary Alberta Office 71,773

Glenmore & Centre Calgary Alberta Retail 68,089

Deerfoot 17 Calgary Alberta Office 67,487

Airways Business Plaza Calgary Alberta Office 66,653

Centre Eleven Calgary Alberta Office 62,323

Stephenson Building Calgary Alberta Office 61,771

Bonavista Square Calgary Alberta Retail 60,900

Sunpark Place Calgary Alberta Office 60,022

Glenmore Commerce Court Calgary Alberta Office 59,270

COMMERCIALPROPERTIES


N A M E C I T Y P R O V I N C E U S E S F

Village Square Mall Calgary Alberta Retail 56,439

Centre 1000 Calgary Alberta Office 55,574

Paramount Building Calgary Alberta Office 53,261

Strategic Centre Calgary Alberta Office 50,573



Parkwood/Eastgate Edmonton Alberta Office 40,583

Petro West Calgary Alberta Office 36,661

Barclay Square Calgary Alberta Office 33,423


Terrace Plaza Edmonton Alberta Retail 31,643


Duncan Plaza Duncan British Columbia Retail 30,002

Wesley Church Calgary Alberta Retail 28,269

Shelbourne Place -Retail Calgary Alberta Retail 27,290

Louise Block Calgary Alberta Office 26,295

534 Calgary Alberta Office/Retail 24,965

Arriva Podium Calgary Alberta Office/Retail 23,364

Kennedale Edmonton Alberta Office/Retail 18,171

Pegasus Business Park Calgary Alberta Retail 14,226


Sundance Place II 3000 Calgary Alberta Retail 11,710

12-10 - 1240 Calgary Alberta Office 11,434

Northwood Edmonton Alberta Retail 10,657

Sundance Place - Retail Calgary Alberta Retail 8,600

1112-1124 Calgary Alberta Retail 8,435

Macleod Place - 201 Calgary Alberta Office 7,747

Macleod Place - 6012 Calgary Alberta Retail 6,016

Macleod Place - 6016 Calgary Alberta Retail 5,718



34 Avenue - Marda Calgary Alberta Retail 2,721

One-Six Calgary Alberta Retail 1,725


1410 Inglewood Calgary Alberta Retail 15,997

M17 Calgary Alberta Retail 8,516

ONE Calgary Alberta Retail 9,444


RESIDENTIALPROPERTIES

Claridge Edmonton Alberta Portfolio 81,014

Lakeridge 99 Edmonton Alberta Portfolio 87,897

Lakeridge 143 Edmonton Alberta Portfolio 129,547

Missao Calgary Alberta Portfolio 58,400

Mission Apartments Calgary Alberta Portfolio 11,390

Shelbourne Calgary Alberta Portfolio 2,752

105 Pinecrest Dartmouth Nova Scotia Portfolio 6,827



117 Albro Dartmouth Nova Scotia Portfolio 10,473

12 Trinity Dartmouth Nova Scotia Portfolio 10,031



40 Brule Dartmouth Nova Scotia Portfolio 7,932


117-119 Pinecrest Dartmouth Nova Scotia Portfolio 11,380

4 Crystal Dartmouth Nova Scotia Portfolio 10,500

9 & 11 Kennedy Dartmouth Nova Scotia Portfolio 57,170

24 Roleika Dartmouth Nova Scotia Portfolio 12,480

7 Kennedy Dartmouth Nova Scotia Portfolio 25,566

67 Caledonia Dartmouth Nova Scotia Portfolio 10,200

79 Lakecrest Dartmouth Nova Scotia Portfolio 93,000

81 Lakecrest Dartmouth Nova Scotia Portfolio 69,000

3 Autumn Dartmouth Nova Scotia Portfolio 18,413

N A M E C I T Y P R O V I N C E S T A T U S S F



44 River Halifax Nova Scotia Portfolio 42,480

451 Herring Halifax Nova Scotia Portfolio 12,990


5 Forbes Halifax Nova Scotia Portfolio 12,222






19 Primrose Dartmouth Nova Scotia Portfolio 14,892


7 Jackson Dartmouth Nova Scotia Portfolio 24,008


190 Oakdene Kentville Nova Scotia Portfolio 39,135

39, 43 & 45 Jefferson Sydney Nova Scotia Portfolio 34,074

65 Dominion Glace Bay Nova Scotia Portfolio 8,400




6 Galaxy Dartmouth Nova Scotia Portfolio 11,309




384.5 Portland Dartmouth Nova Scotia Portfolio 23,875

175 Britain Saint John New Brunswick Portfolio 22,856

100 Inverness Saint John New Brunswick Portfolio 11,500

3, 4, 8 & 9 Shamrock Saint John New Brunswick Portfolio 45,750

237 Roleika Dartmouth Nova Scotia Portfolio 26,100

490 Wiley Windsor Nova Scotia Portfolio 47,112

550 Herring Dartmouth Nova Scotia Portfolio 20,700

611 Herring Dartmouth Nova Scotia Portfolio 10,800


38 Trinity Dartmouth Nova Scotia Portfolio 11,304

4 Alfred Dartmouth Nova Scotia Portfolio 10,362

15 Kennedy Dartmouth Nova Scotia Portfolio 117,536


104 & 106 Albro, 127 Slayter Dartmouth Nova Scotia Portfolio 22,720

14 Jackson Dartmouth Nova Scotia Portfolio 11,368




151 Queen Saint John New Brunswick Portfolio 79,260

411 Ellerdale Saint John New Brunswick Portfolio 114,552

155 Mystery Saint John New Brunswick Portfolio 114,552

1 Alpha Saint John New Brunswick Portfolio 11,484

5 Alpha Saint John New Brunswick Portfolio 11,484

1 Reading Saint John New Brunswick Portfolio 11,895











7 Roxbury Saint John New Brunswick Portfolio 10,334

1410 Inglewood Calgary Alberta Portfolio 59,195

M17 Calgary Alberta Portfolio 34,221

Centro Calgary Alberta Construction 46,853

Gateway Apartments Airdrie Alberta Construction 124,136

Stony Plain Stony Plain Alberta Construction 151,135

One-Six Calgary Alberta Construction 60,055

ONE Calgary Alberta Development 275,000

Gateway Townhomes Calgary Alberta Development 199,557

Watt Road Edmonton Alberta Development 243,529

Creekside Edmonton Alberta Development 92,742

34th Ave Calgary Alberta Development 63,127



BEDROOM RENTAL SUITES

STARTING AT $1200WIFI, WATER & HEAT INCLUDED

COMING SEPTEMBER 2016 REGISTER AT CENTROYYC.CA EMAIL US AT [email protected] TALK TO US AT 403.560.7558 2102 CENTRE ST NE, CALGARY, AB

REDEFINING URBAN LIVING CONCEPTS

“EVEN THOUGH WE

ARE A PRIVATE

COMPANY, WE

MAINTAIN A

STANDARD OF

REPORTING THAT IS

ON PAR WITH THAT

OF OUR PUBLICLY

TRADED PEERS.”

– GRAHAM GARNER, CFO


400, 630 – 8 Avenue S.W.

Calgary, AB T2P 1G6

403.770.2300

403.770.2289

104, 10004 – 104 Avenue N.W.

Edmonton, AB T5J 0K1

780.454.8018

780.454.8818

www.strategicgroup.ca

Strategicgroup

StrategicGrp

StrategicGrp

Strategic Group

CALGARY OFFICESTRATEGIC CENTRE

EDMONTON OFFICECN TOWER

ONLINE

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ANNU AL REVIEW - Amazon S3 · ANNU AL REVIEW STRATEGIC GROUP | ... of two multi-family residential projects and commencement of construction on three others. We also acquired three