Immostar’s new co-presidents say their business relationship is akin to that of Jeff Gorton and Kent Hughes, the Montreal Canadiens executives who have successfully rebuilt the NHL team. 

François Pelchat and Kevin Lachance have been tapped as co-presidents, taking the reins of the Quebec City real estate development firm founded about 25 years ago by André Pelchat, who remains as chair of the board and strategic advisor. 

The Habs’ president of hockey operations and general manager “make their decisions together, have complementary strengths and communicate well,” says François Pelchat, who is a nephew of the firm’s founder.

Likewise, Pelchat, who was previously Immostar’s vice-president development and marketing, says he and Lachance, formerly vice-president, finance and strategy, complement each other well.

“We’ve been working together for more than 10 years,” says Lachance, adding that becoming co-presidents is a logical next step. “We can focus on our strengths and bring Immostar to new levels.”

Pelchat says he and Lachance want to lead balanced lives and working together as co-presidents will ensure they reach that goal. “We’re able to share responsibilities (and) share the stress” when there are important decisions to make, he says.

Will oversee $1-billion asset portfolio

Immostar develops and manages a diversified portfolio of more than $1 billion in real estate assets in Quebec. It concentrates on commercial, industrial, office and residential real estate but is actively considering adding hotels to that list. 

The co-presidents say they are looking at testing Quebec City’s hotel market in the next few years because hotel occupancy rates have reached record numbers, but the inventory is aging. Immostar and its partners have exceptional sites for potential hotels, Pelchat says. 

Immostar has no intention of entering the Montreal market, which the co-presidents say has several good developers and, according to forecasts, faces a demographic decline. Meanwhile the Quebec City market continues to perform, they say. 

The developer has several projects underway in the Quebec City area, including the Carrefour industriel iQC with more than 7 million square feet of developable land. The industrial site is just south of Jean Lesage International Airport.

After 3.5 years of preparatory work, work should officially begin by early November, and a few tenants will be announced soon.

The co-presidents are convinced the site will attract tenants that want to automate and enlarge their footprints in the city, defence contractors and companies attracted to Quebec City’s affordability.

Building partnerships

Lachance says Immostar has partnerships with several major players like Primaris, Industrial Alliance and Fiera. 

It also has a partnership with the Wendat Nation. The two teamed up to create the Ya'ndiyahta' alliance, to develop real estate projects in Wendake near Quebec City.

Their first realized project was Kwayaweh, a 236-unit residential rental complex in two six- and seven-storey buildings that opened earlier this year.

The $70-million project is the largest rental residential complex ever built on an Indigenous community in Quebec. 

Rents average 25 per cent less than comparable developments in the Quebec City region and range from $1,140 for a one-bedroom-plus-den unit to $2,640 for a three-bedroom-plus unit. Most residents are Wendat, but non-Indigenous residents are also welcome.

A 29,000-square-foot office development in Wendake has also been completed and is mostly leased. 

Immostar is looking at other opportunities to team up with the Wendat Nation, such as for seniors and affordable housing.

Office conversion project in Quebec

In other developments, Immostar will invest about $125 million to convert the 10-storey office building at 880 Chemin Sainte-Foy in the Montcalm neighbourhood of Quebec City, into more than 300 rental apartments.

Pelchat says the building, which was completed in 1963, is well-suited to conversion.

The Société québécoise des infrastructures was the main tenant of the building but its lease expires at the end of the year.

Immostar will also add new buildings behind the existing building. Construction should begin early next year and take two years.

Immostar is also teaming up with investment partner iA Groupe financier to develop Alo Ste-Foy, a multifamily development that will have 309 rental units over its 18 storeys.

Built on a former parking lot, the $118 million project will have a direct connection to the city’s future tramway.

Delivery is scheduled for June 2028 for the development, which will seek LEED certification.

Immostar is working on a major affordable housing project on the 375,000 square foot site of Maison Chrysler, a former car dealership, in Charlesbourg, north of Quebec City, 

Immostar aims to become a major player in affordable housing, the co-presidents say, and is eyeing affordable projects in Chicoutimi and other Quebec cities.