10 LEXPERT MAGAZINE
|
NOVEMBER/DECEMBER 2018
ON THE DEAL
LEXPERT: is deal is innovative in the
retail space. Can you talk about how it all
came about? Did the shared connection
with the Caisse de dépôt et placement du
Québec play a role?
ISABELLE DURAND, Vice-President, Legal
Affairs, Operations, Ivanhoé Cambridge:
e shared connection with the Caisse did
play a role and allowed for an easy intro-
duction, but discussions between our re-
spective senior management soon revealed
the extent of our complementary expertise.
Ivanhoé Cambridge as an experienced real
estate owner, developer and operator with
an international footprint, and Cirque as
an internationally renowned live entertain-
ment company.
GENEVIÈVE PARADIS, Senior Director, Le-
gal Affairs, Cirque du Soleil Entertainment
Group: Cirque du Soleil Entertainment
Group had been working on this creative
concept for years and we were looking for
the right partner to bring it to fruition. We
wanted to open the first CREACTIVE
location close to our home and naturally
looked to our closest partners. Ivanhoé
Cambridge seemed like the perfect fit: of
course, we both share ownership with the
Caisse. But beyond that, this project fulfills
both the vision of growth of Cirque du So-
leil and Ivanhoé Cambridges vision for the
future of retail.
LEXPERT: I understand that Ivanhoé is
constructing a buildout to accommodate
the height of the project. Why was Ivanhoé
willing to make a large capital investment?
DURAND: It is really one of Ivanhoé's pri-
orities to offer innovative experiences and
diversify its offering to embrace entertain-
ment and experiential, both to support its
existing tenants and to offer the best and
most up-to-date experiences to its discern-
ing consumers. We believe that this collab-
oration with Cirque exemplifies this vision
for the future of retail, and the investment
required is evidence of Ivanhoé's commit-
ment to making it happen.
LEXPERT: And from the Cirque side, how
does this deal fit with its goals?
PARADIS: While we will always continue
to create shows centered on circus arts, an
important part of our diversification strat-
egy is to broaden our project portfolio by
developing new forms of entertainment,
reaching new audiences and expanding our
own creative and production capabilities.
Family entertainment centres are a natural
fit supporting this effort. It is the evolution
of a concept which has been successful at
Club Med since 2015. We are adapting it to
make it more accessible to families by open-
ing indoor locations close to their homes
and available year-round.
Under the Big Top
LEXPERT: What can you tell me about the
way that the agreement was structured?
ANTHONY ARQUIN, Davies Ward Phillips &
Vineberg LLP (for Ivanhoé Cambridge): We
cannot share the specifics of this transac-
tion, but its essence was really about partner-
ing and sharing of risks in this innovative
concept for the retail-tainment industry.
MATHIEU DESCHAMPS, Norton Rose Ful-
bright Canada LLP (for Cirque du Soleil): I
would add that, as should be the case in
negotiations with respect to putting in
place a partnership like CREACTIVE, we
have all worked toward the common goal
of creating a "win-win" situation for both
parties. e collaborative spirit everyone
displayed during the negotiations was key
in achieving this goal and making sure that
both parties are incentivized and aligned in
making this adventure a success.
LEXPERT: Was the agreement novel or
something the lawyers have seen many
times before? How complex was it? Was it
structured in a particular way to be a model
for the next deal of this kind?
ARQUIN: It was a complex transaction to
put together, in the sense that both par-
ties wore many hats — landlord, tenant,
partner, licensor, operator — in a mix of
real estate and artistic industries, which
entailed a broad scope of business consid-
erations. What struck me the most during
this transaction is how oen we spent time
brainstorming together so as to anticipate
'Retail-tainment' rises: Québec-based icons team up to offer Cirque du Soleil CREACTIVE in malls
INTERVIEW BY GENA SMITH
Isabelle
Durand
Vice
President,
Legal and
Operations,
Ivanhoé
Cambridge
Geneviève
Paradis
Senior
Director,
Legal, Cirque
du Soleil En-
tertainment
Group
The stage was set for a stellar performance as lawyers for shopping centre owner and
developer Ivanhoé Cambridge and Cirque du Soleil negotiated their first agreement
for a new retail concept: CREACTIVE family entertainment centre at Vaughan Mills mall
Anthony
Arquin
Davies
Ward Phillips
& Vineberg
LLP (for
Ivanhoé
Cambridge)
Mathieu
Deshamps
Norton
Rose
Fulbright
Canada LLP
(for Cirque
du Soleil)
