CDPQ statement regarding insinuations and falsehoods in an article published in The Gazette

Caisse de dépôt et placement du Québec (CDPQ) wishes to correct the numerous insinuations and falsehoods found in an article published this morning by The Gazette, entitled “Caisse’s stake in REM station troubles critics,” under the byline of journalist Linda Gyulai.

The journalist created links between different elements and historical events that are completely false and not based on facts. 

The asset purchases and sales to which she refers were made more than 20 years before CDPQ Infra was created and before the Réseau express métropolitain (REM) project was presented.

Ivanhoé Cambridge has not held any assets in the sector targeted by The Gazette identified for quite a few years.

The links made with assets held by Cominar – in which Ivanhoé Cambridge holds less than 5% of company shares (which are, it should be recalled, traded on the public market) – are also false and completely unfounded.

Furthermore, it is false to imply that Otéra Capital (the CDPQ subsidiary in charge of commercial mortgages) has generated or will generate additional returns associated with the REM. Otéra Capital finances commercial property debts. As a mortgage lender, Otéra does not participate in the profits generated by projects on an asset for which it has granted a mortgage loan. The interest rates, penalties and fees incurred by Otéra are not impacted by land value. It is therefore entirely inaccurate to insinuate that mortgage loans granted over a decade or decades before the REM project was announced were granted in order to create “synergies” or to obtain additional returns related to this project. This insinuation is simply not based on facts.

In fact, neither Otéra Capital nor Ivanhoé Cambridge had access to information pertaining to the project or its route before it was released to the public in April 2016.

In addition, the REM’s development and design were part of a very detailed and transparent process:

• The REM’s route was established after reviewing numerous studies and in-depth analyses conducted more than 20 years ago by different partners and public instances.
• More than 80% of the REM’s route was established on the basis of existing railway or highway corridors, including the Deux-Montagnes and Mascouche lines.
• The Deux-Montagnes railway line has been in existence for more than 100 years, and the Correspondance A40 station is aligned with that existing corridor.
• The REM’s route was validated by the relevant authorities with the purpose of proposing an optimized technical solution that would integrate with existing transit networks and be able to transport an optimal number of people.
• CDPQ Infra has conducted comprehensive technical studies (engineering, ridership, integration), and has collaborated closely and actively with all strategic, tactical and operational stakeholders in the Greater Montreal region  to ensure that the REM integration is seamless and complements existing networks.