WERKLIV - Comprehensive Analysis Report

Summary

WERKLIV is a Montreal-based real estate development firm established in 2013 by Daniel Goodfellow. The company specializes in developing intelligently built, attractive, and modern student and rental housing, emphasizing a high quality of life for residents. WERKLIV distinguishes itself by designing projects from the "inside out," prioritizing renter needs, and leveraging data-driven decision-making. As a Certified B Corporation, WERKLIV is committed to social and environmental performance, accountability, and transparency. The firm has provided housing solutions to over 2,000 students and renters over 13 years, demonstrating significant growth in capital raising, asset sales, and market reach. Its mission is to deliver affordable, high-quality living spaces, particularly in underserved markets, while its vision involves revolutionizing real estate development through innovative construction and a deep understanding of occupancy needs.

1. Strategic Focus & Objectives

Core Objectives

WERKLIV's main business objectives include developing affordable student and rental housing by optimizing space for higher bedroom counts, thus reducing individual tenant living expenses through shared apartments. The company aims to manage the entire development process in-house, from land acquisition to asset management, to ensure optimal quality and efficiency in every project element.

Its short-term goals involve the successful completion of ongoing projects like Terrasse des Récollets and Lambe's Lane, while long-term goals focus on replicating the success of prefabricated construction methods and expanding into new underserved markets across Canada.

Specialization Areas

WERKLIV's key areas of expertise lie in the comprehensive in-house management of real estate development, encompassing land acquisition, construction, interior design, and asset management. A unique value proposition is its data-driven decision-making process, which involves collecting, comparing, correlating, and measuring information at each development step to reduce assumptions, mistakes, and risks. The company further specializes in an "inside out" design approach, tailoring buildings to current and future renter needs, starting with everyday living items to optimize space and living quality.

Target Markets

WERKLIV primarily targets markets in Canada, with specific projects and operations in Montreal, Trois-Rivières, St. John's, N.L., Halifax, and Charlottetown, P.E.I. The company strategically identifies and targets "underserved markets," particularly in Atlantic Canada, where student housing development has historically received less attention. Its market positioning strategy involves acting as "pure-play developers," developing, renting out, stabilizing, and then selling properties rather than holding inventory long-term.

2. Financial Overview

Funding History

WERKLIV is a funded company. In January 2023, Harrison Street, an investment management firm, formed a joint venture with WERKLIV to acquire Le Mildoré, a 279-bed purpose-built student accommodation project in Montreal. This investment marked Harrison Street’s entry into the Montreal student housing market as the thirteenth investment by its Canada Alternative Real Estate Fund. WERKLIV retained a 10 percent stake in the Le Mildoré property, demonstrating continued involvement and financial interest. As of August 2021, WERKLIV had approximately $200 million in real estate property developments across Montreal, Halifax, and St. John's.

3. Product Pipeline

Key Products/Services

Le Mildoré (Montreal)

• Description: A 279-bed purpose-built student accommodation project.

• Development Stage: Acquired in January 2023; operational.

• Target Market/Condition: Students in Montreal.

• Key Features and Benefits: Modern student housing solution in a high-demand urban center.

Terrasse des Récollets (Trois-Rivières, Quebec)

• Description: A $23 million, six-storey, 92-unit multiresidential development.

• Development Stage: Construction on the superstructure scheduled to begin in March 2023.

• Target Market/Condition: Students and young professionals.

• Expected Timeline: Target delivery date of July 1, 2024.

• Key Features and Benefits: Utilizes prefabricated concrete panels from AVAC Béton for faster construction and improved quality; designed for affordability.

Lambe's Lane Student Housing (St. John's, N.L.)

• Description: A $96 million, 205-unit project at 6 Lambe's Lane, near Memorial University, comprising just under 670 beds across seven-storey and six-storey buildings.

• Development Stage: Under construction.

• Target Market/Condition: Students of Memorial University.

• Expected Timeline: Anticipated to be delivered in two phases in 2024 and 2025.

• Key Features and Benefits: Addresses the significant demand for student housing in an underserved market.

Charlottetown Renovation Project (Near University of Prince Edward Island)

• Description: A renovation project aimed at student housing.

• Development Stage: Ongoing.

• Target Market/Condition: Students of the University of Prince Edward Island.

Future Explorations:

• WERKLIV is exploring potential long-term multiresidential projects in Granby, Quebec, and other cities in Atlantic Canada, as well as a possible expansion into Edmonton.

• The company is also in due diligence for a renovation, or renovation and new construction project, on Sherbrooke Street in downtown Montreal.

4. Technology & Innovation

Technology Stack

WERKLIV leverages digital tools extensively for all aspects of its operations and project management, maintaining a data-driven approach to decision-making. The company’s core platforms and technologies are geared towards optimizing design, construction, and property management.

Proprietary Developments & Scientific Methodologies:
A significant innovation is WERKLIV's "inside out" design approach, where buildings are designed based on the current and future needs of renters, starting with everyday living items to optimize space and living quality. This methodology allows for higher bedroom counts within apartments, enabling students to divide rent among more people and consequently lowering per-head living costs while avoiding costly amenities not frequently used by students, such as swimming pools or large gyms.

In 2020, WERKLIV acquired AVAC Béton, a concrete prefabrication company. This acquisition enables WERKLIV to pilot prefabricated construction methods, which dramatically speed up the construction process, reduce dependency on on-site labor, improve quality control, and better manage material costs. For example, the Terrasse des Récollets project is being built using prefabricated concrete panels from AVAC Béton, which arrive on-site with windows installed, insulated, and ready for gypsum installation. WERKLIV plans to explore integrating other prefabricated elements, such as kitchens, bathrooms, electrical, and plumbing, into future multiresidential developments.

WERKLIV has also utilized the Upbrella system in past projects like Le Mildoré. This technology facilitates the gradual lifting of the roof using hydraulics, allowing each floor to be completed underneath. This is particularly advantageous for sites with limited crane access and helps save on heating costs during winter construction, creating a safer work environment.

5. Leadership & Management

Executive Team

Daniel Goodfellow

• Position: President and Founder

• Professional Background: Founded WERKLIV in 2013; also leads AVAC Béton. His entrepreneurial journey began during his student years, evolving WERKLIV into one of Canada's successful student real estate development companies.

• Notable Achievements: Established WERKLIV and steered its focus on affordable student housing.

• Key Contributions: Instrumental in integrating innovative construction methods like prefabrication.

• LinkedIn Profile: [https://www.linkedin.com/in/daniel-goodfellow-79942691/](https://www.linkedin.com/in/daniel-goodfellow-79942691/)

Margherita Terrone (Maggie Terrone)

• Position: Executive Vice President

• Professional Background: Expert leader within WERKLIV's multidisciplinary team.

• Key Contributions: Actively involved in strategic direction and project execution, including the pilot prefabricated construction project in Trois-Rivières.

• LinkedIn Profile: [https://www.linkedin.com/in/maggieterone/](https://www.linkedin.com/in/maggieterone/)

Shawn-Alexandre Lennox

• Position: General Manager

• Professional Background: Part of WERKLIV's expert leadership team.

• LinkedIn Profile: [https://www.linkedin.com/in/shawn-alexandre-lennox-b333a362/](https://www.linkedin.com/in/shawn-alexandre-lennox-b333a362/)

Andrea Roy

• Position: Vice President, Product

• Professional Background: Expert leader contributing to the company's product vision.

• LinkedIn Profile: [https://www.linkedin.com/in/andrea-roy-69792019a/](https://www.linkedin.com/in/andrea-roy-69792019a/)

Coline Fiévet

• Position: General Manager: Accounting & Finance

• Professional Background: Responsible for finance and investment opportunities within the company.

• LinkedIn Profile: [https://www.linkedin.com/in/colinefievet/](https://www.linkedin.com/in/colinefievet/)

Recent Leadership Changes

The acquisition of AVAC Béton in 2020 integrated the leadership of that company, with Daniel Goodfellow also taking a leadership role, further expanding the management's operational scope into manufacturing and construction innovation.

6. Talent and Growth Indicators

Hiring Trends and Workforce

WERKLIV has demonstrated rapid growth in hiring employees, with approximately 19 employees as of August 2021, at which point the company had completed about a dozen student housing projects. This indicates a measured growth trajectory, emphasizing in-house management by multidisciplinary teams. The acquisition of AVAC Béton further expanded its operational capacity and team. Key roles being recruited are likely to support its expansion in development, construction, and asset management, particularly as it scales up prefabricated construction initiatives. The company's growth trajectory is upward, with significant projects in the pipeline and plans for market expansion.

7. Social Media Presence and Engagement

Digital Footprint

WERKLIV maintains a professional social media presence, primarily through LinkedIn, where it highlights its projects, leadership, and company culture. The company's website also features updates on its "Impact" and "Projects," serving as a central hub for its brand positioning. Brand messaging often revolves around "Building Quality. Of Life.™" and emphasizes their unique approach to student housing development, affordability, and technological integration. This messaging showcases their commitment to creating better living spaces and their innovative construction methods.

8. Recognition and Awards

Industry Recognition

WERKLIV is recognized as a Certified B Corporation, which signifies its adherence to high standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. This certification highlights their commitment beyond financial returns.

9. Competitive Analysis

Major Competitors

WERKLIV operates in the competitive real estate development market, particularly within the student housing sector.

• MRV Engenharia: A large Brazilian construction company, though its direct competitive overlap with WERKLIV's specific student housing niche in Canada might be limited, it represents a significant player in broader residential development.

• Anant Raj Group: An Indian real estate developer, similar to MRV Engenharia, its direct competition with WERKLIV's Canadian student housing focus is indirect, showcasing the global nature of real estate development.

• NeoLiv: Details about NeoLiv are less readily available, but it likely operates in a similar residential development space, potentially with a focus on modern living or specific housing segments.

The student housing market itself involves numerous active competitors, including both funded companies and those that have exited. WERKLIV differentiates itself through its "inside-out" design approach, commitment to affordability, and strategic use of prefabricated construction.

10. Market Analysis

Market Overview

The student housing market is considered a "market-enduring category." In Canada, particularly in cities like Montreal, there is a significant shortage of student accommodations, driven by a large student population and increasing housing costs. Downtown Montreal, for instance, has experienced substantial population growth, further intensifying the demand for purpose-built student housing. Markets in Atlantic Canada were historically "underserved" by developers, presenting significant growth potential for companies like WERKLIV.

Growth Potential: The persistent demand for affordable housing, especially among students seeking to lower their overall living expenses, is a key dynamic within this market, indicating strong growth potential.
Key Market Trends: Trends include a focus on purpose-built student accommodation, the integration of technology in building design and management, and a growing emphasis on sustainability and affordability.
Market Challenges and Opportunities: Challenges include rising construction costs and labor shortages, which WERKLIV addresses through prefabricated construction. Opportunities abound in underserved markets and in addressing the ongoing housing crisis for students and young professionals. WERKLIV's operational resilience was demonstrated by reporting zero vacancy and zero delinquency during the pandemic, indicating consistent demand in its specialized market segment.

11. Strategic Partnerships

Harrison Street

• Nature of Partnership: Joint venture to acquire Le Mildoré, a purpose-built student accommodation in Montreal.

• Strategic Benefits: Allowed Harrison Street, a leading investment management firm, to enter the Montreal student housing market, while WERKLIV retained a 10 percent stake, benefiting from strong financial backing and market validation.

• Collaborative Achievements: Successful acquisition and operation of a 279-bed student housing project.

AVAC Béton

• Nature of Partnership: Acquisition of AVAC Béton, a concrete prefabrication company, in 2020. This represents a strategic vertical integration.

• Strategic Benefits: Provides WERKLIV with in-house capabilities for prefabricated construction, enhancing control over timelines, costs, and quality. It also reduces dependency on on-site labor and accelerates project delivery.

• Collaborative Achievements: Successful pilot of prefabricated construction methods in projects like Terrasse des Récollets, demonstrating dramatically faster construction times and improved efficiency.

12. Operational Insights

WERKLIV's operational strategy is distinguished by its comprehensive in-house management of the entire development process, from land acquisition to construction, interior design, and asset management. This integrated approach allows for optimization of every product element and ensures consistency in quality.

Competitive Advantages:

• "Inside Out" Design Methodology: A core operational differentiator, ensuring developments are tailored to renter needs from the initial stages, leading to optimized space utilization and enhanced living quality.

• Prefabricated Construction (AVAC Béton): The adoption of prefabricated construction methods is a key operational strength, allowing for faster construction, reduced reliance on on-site labor, improved quality control, and better material cost management. This significantly shortens project delivery times compared to traditional methods.

• Focus on Affordability: Designing units with essential amenities for students, while avoiding costly features (like elaborate gyms or swimming pools) often found in other developments, contributes to lower living expenses for tenants.

Operational Strengths:

• Data-driven decision-making: Minimizes assumptions, mistakes, and risks throughout the development cycle.

• Vertical Integration: Through the acquisition of AVAC Béton, WERKLIV controls a critical part of its supply chain, enhancing efficiency and quality.

• Resilient Business Model: Demonstrated by zero vacancy and delinquency during the pandemic, highlighting strong execution in its niche market.

Areas for Improvement:

• While not explicitly stated, continuous scaling of prefabricated construction to maintain quality and cost-effectiveness across a wider range of projects would be an ongoing operational challenge and opportunity.

13. Future Outlook

Strategic Roadmap

WERKLIV's strategic roadmap includes continued expansion into underserved markets, particularly within Atlantic Canada, and exploring new regions such as Edmonton. The success of its prefabricated construction pilot project in Trois-Rivières is intended to serve as a template for future developments, enabling the company to replicate efficiency and potentially scale up manufacturing capacity with AVAC Béton. This strategy aims to deliver more efficient and affordable housing solutions across Canada by building faster and more cost-effectively.

Growth Strategies

The company plans to further integrate prefabricated components beyond concrete panels, such as kitchens, bathrooms, electrical, and plumbing. WERKLIV is actively pursuing new projects, including renovations and new constructions in high-demand areas like Sherbrooke Street in downtown Montreal.

Expansion Opportunities

Future expansion opportunities lie in replicating its successful model in other Canadian cities facing student housing shortages and by further leveraging its prefabricated construction capabilities for broader multiresidential developments.

Future Challenges and Mitigation Strategies

Future challenges may include adapting prefabricated construction to diverse architectural requirements, managing logistics for large-scale prefabrication, and navigating evolving market dynamics. Mitigation strategies involve continuous R&D in prefabricated building systems, strategic partnerships for market entry, and continued focus on data-driven decision-making to adapt to market shifts. WERKLIV's commitment to affordability and a deep understanding of renter needs, combined with innovative construction techniques, positions it to capitalize on the ongoing demand in the student and rental housing sector.