Arcturus Realty Corporation - 2009 Special Supplement to Canadian Property Management Magazine

ESSENTIAL REAL ESTATE SERVICES

Special Supplement to Canadian Property Management Magazine

“We are 100% management owned. Our principal to principal relationships, entrepreneurial spirit and passion help us achieve our promise to maximize the performance of our clients’ real estate.”Geoffrey J. Harrison President and CEO

ESSENTIAL REAL ESTATE SERVICES

arCturuS rEalty COrPOratiOn iS Canada’S lEading indEPEndEnt PrOvidEr Of ESSEntial rEal EStatE SErviCES. WE ManagE OvEr 600 rEtail, OffiCE and induStrial PrOPErtiES natiOnally tOtalling 33 MilliOn SquarE fEEt. WWW.arCturuSrEalty.COM

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OOn June 19, 2007, Geoff Harrison, president and CEO of Arcturus Realty Corporation, left the comfy confines of his Toronto-based office to embark on an ambitious cross-country trek.

His mission: To meet and greet virtually every one of Arcturus’ 350-plus employees in celebration of the company’s one-year anniversary.

“It was a chance to personally thank and recognize them for their contribution to that first year of success,” says Harrison who was accompanied by other members of senior management. “It was also an opportunity to talk about what we had accomplished and the broader vision of the organization.”

This entails becoming Canada’s leading independent third party provider of essential real estate services.

Founded June 16, 2006, with the 100 per cent management buyout of its predecessor, O&Y Enterprise, by Harrison and other O&Y Enterprise key managers and executives, Arcturus delivers a comprehensive scope of management and leasing services to approximately 600 office, retail and industrial properties totalling 33 million square feet. The privately owned company also provides development and advisory services to assist clients in repositioning their real estate assets and enhancing their long-term value. Its diverse client base consists of pension funds, real estate investment trusts, financial institutions, insurance companies, major retailers as well as public and private sector investors.

While the company name is relatively new — Harrison re-branded it Arcturus, which is the name of the brightest star in

the northern hemisphere — the organization and many of its employees and clients have a rich history and solid roots.

“Since the beginning, we’ve had great support and encouragement from our employees as well as our clients,” notes Harrison.

Led by a senior management team 11-people strong, Arcturus is headquartered in Toronto and has four regional offices strategically situated from coast-to-coast — Montreal, Calgary, Dartmouth, N.S., and Burnaby, B.C., the latter of which was established this past June to better serve its Western-most clients. By providing services through this unique regional structure, it places senior level management and accountability for service delivery in each local market. This allows Arcturus to function as a smaller, entrepreneurial service provider in a specific geographical region while maintaining the benefits of standardized central systems, reporting and a significant national presence.

In its first year of operation, Arcturus also expanded its management service offerings to meet its clients’ growing demands.

In January 2007, the company entered into a fifty-fifty partnership with Cushman & Wakefield LePage. The result: Cushman & Wakefield Facilities Management. This new entity focuses its operations on efficiently managing workplaces thereby allowing its clients to focus on their core business.

Approximately four months prior, in September 2006, Arcturus reconstituted a relationship with SMG of Philadelphia

lEading tHE Way

From Left to Right: Barbara Rodgers, Chief Operating Officer Bill Black, Chief Financial Officer Geoff Harrison, President & Chief Executive Officer

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(a partnership that previously existed under O&Y Enterprise) to create Arcturus SMG Canada, which offers public assembly facilities management.

According to Harrison, this strategic partnership capitalizes on the growing demand for professionally managed public facilities, such as stadiums, arenas, theatres, auditoriums and trade and convention centres.

“When Arcturus started out, its primary focus was delivering a broad range of real estate services but we wanted to look beyond organic growth,” says Harrison. “So, we looked at other real estate-related service lines that would allow us to grow our business.”

And, of course, enable the company to continue to operate relatively conflict-free.

“As an independent manager of real estate assets, we don’t buy or own real estate for ourselves, which doesn’t allow for the reality or perception of conflicts of interest … given that all our clients, in one way or another, own real estate,” notes Harrison, adding this important detail differentiates Arcturus from its competitors in the marketplace.

According to Harrison, the company’s unique ownership structure also sets it apart and a step above its industry counterparts.

With Arcturus being wholly management owned, clients deal directly with the firm’s principals who are not only empowered to make decisions but ensure a comprehensive understanding of each client’s needs, which ultimately increases Arcturus’ ability to perform.

“When you become an owner of a business and, consequently, have more control of your destiny, it

becomes much more personal in terms of the commitment you give to the company and the level you strive to achieve in meeting and exceeding your clients’ needs,” he explains.

Technology is another area that sets Arcturus apart from its competition, adds Harrison.

The company places great value on arming its team with the latest information technology and telecommunications infrastructures. Over the past four years (under Arcturus and its predecessor company), the organization has invested upwards of $10 million in technology.

“Technology is very important in terms of our ability to provide flexibility and customization to our clients so we can meet their needs today and tomorrow.”

But, Harrison continues, Arcturus’ greatest asset is its people.

While Harrison is responsible for the overall vision, leadership and management of the company, he attributes the firm’s success to the entrepreneurial zeal, camaraderie, client service ethic, innovative thinking, strong market knowledge and experience of the entire Arcturus team.

“We’re all committed to delivering service to the client, keeping the client happy and continuing to do so to allow us to retain contracts as well as obtain new ones,” he says.

One such person is Barbara Rodgers, a key partner who was recently promoted to chief operating officer. With more than 20 years’ experience managing national real estate portfolios, Rodgers is responsible for Arcturus’ real estate service delivery across Canada — its portfolio of commercial, retail and industrial properties. Her focus is to achieve

“it’s great to give back, but it is even better when everybody pulls together and has a great time doing so.”

Above: The Arcturus leasing team at the ICSC Convention in Whistler, B.C.

Left: Head office staff on Jeans Day, part of Arcturus Cares!, the company’s national charity initiative.

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operational excellence for clients and to ensure a high level of satisfaction with the services delivered.

Another key partner is chief financial officer Bill Black who is responsible for overseeing all back office operations, from property and corporate accounting to financial reporting and IT.

“These two people run the business on a day-to-day basis, which allows me to really focus my time on how to grow the business and keep in touch with our clients,” notes Harrison.

This is essential if the company wants to build on its initial accomplishments.

However, the secret to success, Harrison continues, is simply delivering on the company’s promises.

“(Real estate) is a relationship business but that only counts for so much,” he explains. “You can have a great relationship with a client but if you are not performing and following through on your promises, a relationship will only give you a second chance. After that, it isn’t going to work. ”

A firm believer that companies should not only be environmentally but socially responsible, Harrison purports the significance of giving back to communities where Arcturus’ employees live and work. This strong belief has provided the foundation for Arcturus Cares! — the company’s national charity initiative which currently supports the Children’s Aid Foundation’s Miracle Fund and the Canadian Association of Food Banks.

“We polled our employees to find out what causes were important to them,” says Harrison who believes the success to-date is because the company actively involved its staff in the selection of the charities as well as the fundraising process.

In December 2007, Arcturus’ head office raised more than 9,300 pounds of food during its winter food drive, just 700 pounds shy of the company’s 10,000 pound national goal.

“I was amazed that we almost raised here, at 425 Bloor St. E., our national goal,” says Harrison enthusiastically, adding the entire company well exceeded the ambitious target.

Other fundraising initiatives include the production of an Arcturus cookbook, featuring staff members’ favourite recipes, and the introduction of a spring/fall line of “Arcturus wearables” — golf shirts, caps, windbreakers, backpacks, travel mugs and thermal blankets. Every third Tuesday, staff also enjoy a “jeans day” at a cost of $5. All monies raised are donated to the Children’s Aid Foundation Miracle Fund to help send neglected, impoverished and abused kids to camp. The company’s annual target is $10,000.

“It’s good to give back but it is even better when everybody pulls together and has a great time doing so,” he says.

In addition to Arcturus Cares!, the firm makes an annual corporate contribution to these charities. Employees are also given time to volunteer for the charity of their choice once a year during company time.

“I’m not only very fortunate to have the employees and partners that I have but I’m grateful for the support we’ve received from our clients both new and old, so it’s only right for us to help those less fortunate than ourselves,” notes Harrison.

“We’re all committed to delivering service to the client.”

Geoff Harrison, President & Chief Executive Officer

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AArcturus’ development and advisory services department provides a unique service to its clients. Led by Ron Taylor, its mission is to assist property owners across North America and abroad to maximize value in their real estate.

“If an existing client has land or a building that is underperforming or an opportunity that is not being realized, then I can help solve that,” says Taylor, adding as senior vice-president, development and advisory services, his role often entails taking a problem and turning it into an opportunity.

“We know buildings have to be filled, well-run and well-maintained but we also recognize there are opportunities beyond managing the building that create value for our clients. Our management team is very much in tune with recognizing these opportunities and that is one of the things that sets Arcturus apart and keeps the company at the forefront of the industry.”

A high energy visionary with more than 25 years of real estate experience, Taylor also provides new clients with dynamic development concepts and strategies. Moreover, he advises them on how to implement these ideas and often assists in setting up the required internal infrastructure to carry out their vision.

“Much of my work, which is project oriented, involves supplementing skills that already exist in an organization,” says Taylor.

Taylor’s particular expertise in urban mixed-use, retail/entertainment properties and sustainable development strategies has become a valued commodity around the globe. With a client base split between public and private industry sectors, he has worked on a multitude of not just exciting but influential projects. This includes creating and implementing a redevelopment strategy for the amenity components (including the shops and restaurants) in Canada’s tallest office

building, First Canadian Place; the award-winning Queen’s Quay Terminal; London’s Canary Wharf, one of the largest commercial mixed-use developments ever undertaken in Europe; Yerba Buena Gardens in San Francisco; and the Halifax Seaport redevelopment, which was recognized in 2006 with a prestigious Brownie Award for best large-scale redevelopment.

Taylor is particularly passionate about his current assignment on Vancouver Island. He is the development manager for Turner Lane Development Corporation’s Colwood City Centre — a four million-square-foot urban, mixed-used development. The development is based on the principles of ‘smart growth’ and will be an integrated work, live and play community and “urban centre” for the west shore communities.

Recently, Taylor acted as development advisor on behalf of a group of investors for a large mixed-use redevelopment in Kingston, Ontario. The site is strategically located in the fast-growing west end of the city. It is one of Nortel’s first industrial sites and includes a 500,000-square-foot factory that has been vacant for years. Taylor’s team prepared a redevelopment plan and strategy for the site and played an integral role in helping to secure an official plan amendment and re-zoning for this massive redevelopment, known as City West Kingston.

“I try to keep one public sector assignment active at all times,” notes Taylor who just recently completed a four-year assignment as development advisor to the City of Burlington for its downtown waterfront redevelopment plan, entitled Core Commitment. He has worked on many downtown strategies in Canada and abroad, including assignments in Winnipeg, Thunder Bay, Knoxville, Tenn., Atlantic City and Mexico City.

urBan viSiOn

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“The work I’ve been doing recently is often related to downtown revitalization and adaptive reuse — finding purpose for underutilized properties,” explains Taylor. “I work typically with a team to put together strategies to improve areas of a city or buildings that may not be performing very well for a variety of reasons.”

Taylor recently acted as development advisor for the restoration and adaptive reuse of Toronto’s John Street Roundhouse. He was also project director for Union Pearson Group’s proposed redevelopment of Union Station.

While each project is unique and rewarding in its own right, Taylor says his recent work with the Halifax Port Authority (HPA) has been hugely satisfying.

Working with HPA, the team created a detailed approach for the remediation and adaptive reuse of approximately 540,000 square feet of underused industrial property. More than 50 per cent of the existing buildings are now redeveloped, including a film and media centre, an events facility, two new cruise pavilions and a new campus for NSCAD University, one of North America’s first art schools.

“We took the old sheds that were being underutilized and we converted them,” says Taylor about the Halifax Seaport redevelopment project. “I’m also particularly happy with that project because it is an arts district, which attracts local residents and visitors and is a spectacular point of arrival for over 200,000 cruise passengers each year.”

This was one of the main goals of the Halifax Seaport master plan: Creating an environmentally, financially and socially sustainable development — something Taylor has committed to wholeheartedly both professionally and personally.

“I made a decision a couple years ago that I would only work on sustainable developments,” says Taylor who bought a house last year in Nova Scotia and is hoping to take it completely off the grid. “With our infrastructure aging and

Above: Part of the Halifax Seaport redevelopment NSCAD University’s new campus is a blend of history and the school’s cultural vision.

Opposite: The Halifax Seaport is positioned to be the city’s great new destination for local residents and visitors alike.

municipalities without monies to replace that infrastructure, we need to be smart about what ‘programs’ we need so we won’t have to replace as much infrastructure down the road.”

According to Taylor, clearly understanding the market and then testing potential “program” or building use possibilities is key to realizing a client’s vision and ensuring the project’s long-term success.

A proponent of the charrette approach — a collaborative and inclusive process that involves all stakeholders, including the client, architect, city staff (if it’s a municipal project) and community, as well as independent experts in creating a plan — Taylor says the most successful programs are those that are flexible and leave behind ownership.

But the charrette process is only successful if public and private sector interests are aligned and you have the right team, he notes.

With a wealth of experience and industry knowledge, Taylor is not only at the top of his field but knows who is at the top of theirs.

As a result, “I have the ability to bring the right team together with the right experience,” he says, adding most of the work that comes his way today is by word of mouth.

“Being able to bring experts with new and old ideas together is a very important aspect of what I do.”

Taylor’s natural ability to lead a group, out-of-the-box thinking, attention to detail, hands-on approach and work ethic are also valuable assets. But it is Taylor’s passion for the business that has made him a recognized expert in his field.

Ron Taylor, senior vice-president, development and advisory services

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