International private equity investor L Catterton Real Estate is buying into Royalmount, a $1.7-billion mixed-use business and entertainment district by Carbonleo on the Island of Montreal.

The Royalmount development by Carbonleo on the Island of Montreal. (Rendering courtesy Carbonleo)

L Catterton Real Estate (LCRE) is the real estate investment and development arm of L Catterton, the largest global-focused private equity firm in the world. Royalmount is designed as a multi-functional destination in the City of Mount Royal and was created by Andrew Lutfy and his development team at Carbonleo.

Royalmount will offer innovative retail, work, entertainment and hospitality components, says the project’s leader. 

“Royalmount will be a feast for the senses – a super-stage for self-expression and connection and a place of uncommon quality,” said Lutfy, chairman of Carbonleo and founder of Royalmount, in a release. “We are proud to welcome LCRE to Montreal and to share in our vision of making it a global real estate destination. We are confident that LCRE is the ideal partner for a project of this scale and imagination.”

For its part, L Catterton says Royalmount is a good fit for its investment philosophy.

“We are honoured to partner with Carbonleo on such an extraordinary project and thank Andrew Lutfy and his team for their trust,” said Mathieu Le Bozec, managing partner of LCRE, in the release. “With its scale and underlying vision, Royalmount will be one of the most innovative real estate projects in the world, offering an unrivalled consumer experience that we hope all Montreal residents and visitors will enjoy.”

Carbonleo sought $750M in investment

Terms were not disclosed, but Carbonleo was seeking partners to invest up to $750 million into the project, executive vice-president Claude Marcotte told attendees at the recent Quebec Apartment Investment Conference in Montreal. (See related story Montreal’s Carbonleo lays out Royalmount mega-project)

LCRE funds include investment sponsorship from LVMH Moet Hennessy-Louis Vuitton, the world leader in high-quality products, and its holding company Groupe Arnault. Since its formation in 1989, L Catterton has made more than 200 investments in leading consumer brands — which has been a major focus for the firm. 

The partnership will leverage LCRE’s extensive international expertise launching globally acclaimed projects including The Amazing Brentwood in Metro Vancouver, Miami Design District and Tokyo’s Ginza SIX.

Carbonleo says the 3.6 million-square-foot, privately funded project was conceived following years of research and consultations, comprehensive futurist workshops, and a strategic and business development initiative.

This project will restructure a former industrial district and create 15,000 jobs, Carbonleo says.

New entertainment, culinary, retail

Royalmount will feature entertainment venues new to Montreal, extensive dining and hospitality possibilities. Retail will include world-class fashion and luxury rows, international flagships, independent boutiques, and family-oriented shopping from both international and local vendors.

The culinary destination will feature more than 100 planned food and beverage providers.

“As only Montreal can offer, as a city with both a neighbourhood feeling and international appeal, visitors will enjoy a curated set of popular restaurant outposts, newcomers, trendsetters and luxury players,” Carbonleo says in the release.

The site is also expected to include five hotels, four office towers, a wellness village and a transportation hub anchored by a $20-million privately funded, fully enclosed pedestrian and bike-friendly bridge connecting visitors from the metro to the development.

Royalmount is the second such project in Montreal currently being developed by Carbonleo, along with the downtown luxury ecosystem featuring the Four Seasons Hotel and Private Residences.

About Carbonleo 

Carbonleo Real Estate Inc. is a private Quebec-based property development and management company that has pioneered a progressively human, vibrant and highly experiential approach to developments. 

With a track record of developing successful next generation mixed-use developments, Carbonleo is dedicated to the ongoing revitalization of Montreal, and in continuing to create a portfolio of exciting, high value, differentiated assets that integrate seamlessly into the regions in which they come to life.

The company, which employs 50 and was founded in 2012, has numerous projects in its stable including Quartier DIX30, Royalmount, and Four Seasons Hotel and Private Residences Montreal.

About L Catterton Real Estate 

With more than $15 billion of equity capital across six fund strategies in 17 offices globally, L Catterton is the largest and terms itself the most global, consumer-focused private equity firm in the world. It was formed in 1989 through the partnership of Catterton, LVMH and Groupe Arnault.

L Catterton’s team of more than 160 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad thought partnership network.

L Catterton Real Estate seeks to generate attractive risk-adjusted returns from a select number of high-quality, luxury retail-driven, mixed-use real estate developments in premium locations globally, building close and long-term partnerships with local developers.

LCRE provides differentiated operating and strategic support to its partners, all focused on enhancing value and investment returns.