Brownfields Financing
The Brownfields Financing feature is sponsored by our Gold Sponsor
Financing – Private Equity Funds
Kilmer Brownfield Equity Fund L.P., a GOLD Sponsor on aboutREMEDIATION, has created Canada’s first specialized brownfield private equity fund.
The Fund will make investments in a diversified portfolio of Brownfield Redevelopment Projects in Canada. The investment process to be undertaken by the Fund will involve the acquisition, redevelopment and disposition of qualifying brownfield sites. The redevelopment process will involve the remediation of the property and may involve rezoning to a higher-value usage. The Fund will not develop new buildings on its sites, but will sell the sites to real estate developers or end-users for build out.
The Fund seeks to capitalize on recent legislative and policy reforms and market changes which will improve the risk-reward relationship of brownfield redevelopment specifically in Canada. In the U.S., the private equity fund vehicle has been actively and successfully engaged in brownfield redevelopment for a number of years.
Kilmer believes that the market timing for establishing the Fund is very good. There are several powerful forces in Canada now which create a favourable environment for the creation of a private equity fund of this nature. In short, these are: (i) legislative reforms adopted by all provinces limiting exposure to regulatory environmental liability; (ii) land-use planning reforms aimed at curbing urban sprawl and promoting sustainable growth and urban intensification; (iii) municipal incentives promoting brownfield redevelopment; (iv) stricter corporate disclosure requirements for contingent environmental liabilities; and (v) the availability of sophisticated risk management products like environmental liability insurance.
The Fund will be established as Canada’s first specialized brownfield private equity fund and Kilmer’s goal is to become Canada’s leading brownfield redevelopment specialist. The intention is to become the “Blue Chip” Canadian brownfield solution for landowners—and in particular, corporate landowners—with properties complicated by environmental concerns.
The Fund is sponsored by Kilmer Van Nostrand Co. Limited ("KVN" or the "Sponsor"). KVN is a privately-held Canadian investment holding company based in Toronto with investments in three main areas: (i) private equity (including Kilmer Capital Partners, a $115 million buyout fund), (ii) sports, entertainment and media, and (iii) construction and infrastructure. KVN is the General Partner of the Fund and the Management Team includes a member of the core management group of KVN.
The Fund’s target for total commitments is $100,000,000, of which KVN has made a significant lead commitment. Through this commitment, the Fund has become fully active in the marketplace since its establishment in January 2006.
Successful brownfield investing is complex and requires a multidisciplinary and collaborative managerial approach. The Sponsor has assembled a Management Team that represents the key disciplines required for successful brownfield investing: environmental risk management, brownfield development, real estate finance and investment management. Members of the Management Team have played leading roles in some of the largest and most significant recent Canadian brownfield redevelopment projects.
The members of the Management Team are Kenneth Tanenbaum (President), David Harper, M.Sc., P.Geo. (Environmental Risk Management), Andrew Himel, M.B.A. (Finance) and Pamela Kraft, M.C.I.P., R.P.P. (Development and Planning).