Hungerford Properties has raised an inital CAD100m (€68m) for a fund focused on Western Canada.
The Vancouver-based company said it is aiming to raise $200m for its second Hungerford Properties Western Canada (HPWC) vehicle.
The fund will focus on the refurbishment and development of real estate in seven major cities in the region.
Existing institutional, family office and high-net-worth investors backed the fund, with new investors being sought.
The company said Western Canada had outperformed G7 countries for most of the last decade, with strong GDP growth, population increases and wealth creation.
It said recent energy-price volatility had boosted the economies of British Columbia and Manitoba while creating buying opportunities in Alberta and Saskatchewan.
Hungerford raised $120m for its HPWC Opportunities Fund in 2013, backed by institutional investors from Asia, Europe and North America.
The fund targeted Vancouver, Edmonton and Calgary, focusing on moderately leveraged commercial and residential properties with a value-add investment strategy.