Sébastien Leboeuf, CEO and Founder of BC-based real-estate development firm Ovis Group, chats about his company's rise to large-scale construction following its beginnings in Quebec, plus an outlook on the Greater Victoria real-estate development market. Citified.ca
Ovis Group's Sébastien Leboeuf discusses the company's projects in Victoria, and its rise to big-time development
Mike Kozakowski, Citified.ca
Published November 10, 2024
Citified's Ten on the 10th is a monthly question-and-answer segment connecting our readers with the insight and knowledge of Victoria's top real-estate and business professionals.
Ten on the Tenth's November, 2024 segment features Sébastien Leboeuf, CEO & Founder of BC-based real-estate development firm Ovis Group.
Asking the questions is Ross Marshall, Senior Vice President of the Victoria offices of commercial real-estate brokerage CBRE. As a leader in facilitating large-scale commercial real-estate transactions throughout the Capital Region – which include apartment complexes, industrial retail and office properties, and land/development opportunities – Ross and his team are at the forefront of market-leading real-estate transactions on Vancouver Island.
Would you like to be featured as part of a future Ten on the 10th Q&A? We'd like to hear from you.
Please tell us a bit about the Ovis Group, from early days to present.
Ovis Group was founded to address the need for quality housing and community-focused spaces. Since our beginnings, we’ve grown our portfolio to include significant projects in Greater Victoria, its surrounding areas, and Quebec City. Our early work was rooted in Quebec, but over time we expanded westward to meet the demands of diverse communities. Today, we are proud to play a role in reshaping communities with a focus on sustainable, high-quality rental housing that enhances residents’ quality of life and contributes to local economies.
How did you get into the real-estate development industry?
I knew from a young age that I wanted to work in real estate. My family is from a remote region in northwestern Quebec, but we moved to Quebec City when I was 16. Soon after, I helped my father scout his first property, and we decided to open a restaurant in one of the buildings he purchased. This was my first real business experience, and it sparked my entrepreneurial drive. At 21, I left my university studies in software engineering to pursue my dream of owning rental properties.
Starting in the economic downturn of the early ‘90s, I found opportunities in undervalued properties and learned the ropes of renovation and management. By 2003, I expanded into raw land development, building single-family subdivisions and establishing a larger portfolio. I retired briefly in 2015 but soon returned to property acquisitions in Montreal and Quebec City. The pandemic prompted a desire to explore the West Coast, leading me and my wife to Vancouver Island, where we founded OVIS Group. We now focus on developing rental properties in Greater Victoria, with recent projects like OVIS ONE and Odyssey in Saanich. This journey has been challenging but immensely rewarding, and we look forward to further growth and reach our 1000 units goal before the end of 2024.
Ovis Group is quickly becoming a key part of Greater Victoria’s new-build rental housing market. What made you choose Greater Victoria to invest in?
Greater Victoria offers an appealing combination of natural beauty, vibrant communities, and strong economic growth. The area’s rental market is buoyed by population increases, a robust tech sector, and a lifestyle that attracts families, professionals, and retirees. We saw the opportunity to contribute high-quality rental developments that align with the local character and long-term vision. Our commitment is to create spaces that bring value to the region and establish Greater Victoria as a model for well-planned, sustainable growth.
You have multiple projects in planning currently on the south Island. Can you go through them, including the unit counts you are proposing?
Certainly. We have several impactful projects currently underway:
Langford - OVIS ONE: This is our flagship project in Langford and the area’s first tallest concrete building dedicated to renters. OVIS ONE is a high-quality development comprising 80 residential units and 2 commercial spaces.
Saanich - Odyssey: Located in a prime spot directly across from Tillicum Mall, Odyssey is designed to offer a total of 242 residential units along with eight commercial spaces. This project emphasizes accessibility and convenience for residents.
Langford - Reunion at Belmont Market: A recently acquired, completed project, Reunion by Belmont offers 120 residential units with a great selection of amenities. Situated in the heart of Langford’s commercial district, it provides easy access to shopping and services.
We also have several other projects in the pipeline, which we look forward to announcing soon.
As you’re working in several municipalities, can you speak to how their development application processes differ? Are there any aspects of any of them that you’d like to see exported to their neighbours?
Each municipality presents unique challenges in its approach to development. For OVIS ONE in Langford, the process was relatively smooth, though there were challenges. We were able to go from rezoning to construction start in about 18 months. While this was manageable, ideally, we’d like to see timelines cut in half to better align with project pro forma goals.
For Odyssey in Saanich, we purchased the property with an existing building permit application, though the initial two owners faced a lengthy approval process. Delays and fees in some cities can increase costs, ultimately impacting rental rates for future tenants. While government initiatives aim to expedite municipal applications, implementing faster timelines is challenging for cities. We hope to see these fees and delays reduced in the near future to improve project feasibility and affordability.
What are your thoughts on federal politics? Does one political leaning, in your opinion, present better opportunities for the development community than others?
I prefer to keep politics separate from business, but I believe a conservative government might bring stability to the housing market by avoiding policies that can unintentionally hinder growth. Previous policies under other administrations created unforeseen obstacles for developers, impacting affordability and housing availability. Consistency and a business-friendly approach are essential for a sustainable housing market, and I believe such an approach could benefit the development sector as a whole.
Having worked in Quebec and now BC, how would compare or contrast the two provinces as a real-estate developer?
This is a complex question! I moved from Quebec to BC for several reasons, and each province has its strengths and challenges. In Quebec, construction labor costs are high due to union regulations, and rezoning is a lengthy 18-month process with public referendums that can easily halt projects. However, once zoning is in place, building permits are granted quickly—often within 60-90 days. Quebec’s streamlined permitting, which relies on architects to meet code compliance, can expedite timelines significantly.
In BC, costs related to DCCs and other fees are much higher, but there’s no PST at completion like in Quebec. The Quebec market has lower rents and higher vacancy, although demand for affordable housing remains strong in both provinces. We’re currently planning a 357-unit project near Laval University, which will be carbon-neutral and benefit from a new law that bypasses public hearings, reducing potential delays.
Both regions have distinct approaches, and there are lessons to be learned from each.
Many new-build communities in Greater Victoria are pursuing low parking, or even no parking, within their projects. What is your approach to parking supply at Ovis Group’s developments?
Parking requirements are determined by the specifics of each project and the type of tenants we anticipate. For every development, we analyze market needs and look at what has worked (or not) in comparable projects. This research ensures we strike the right balance, providing sufficient parking while minimizing excess to maximize usable space for tenants.
From a supply and demand perspective, do you foresee a medium-term equilibrium being reached by Greater Victoria’s rental housing supply, or do you foresee more demand than supply into the 2030s?
We are noticing a slowdown in the rental market, with some price reductions and incentives, like free months. Moving forward, we’re cautious with new projects, focusing on prime locations and high-quality concrete buildings that stand out from standard wood-frame developments. Programs by CMHC and high-interest rates have spurred more rental projects, with some condos being switched to rentals.
While Greater Victoria remains a prime market for rentals, we’ll be attentive to market trends to ensure our projects meet current demands without over-saturating the market.
Have you considered participating in the development of condominiums in Victoria? Why, or why not?
Currently, we have no plans to enter the condominium market. Our expertise and strategy are focused on rental properties and long-term asset acquisition, which allows us to concentrate on delivering exceptional, sustainable rental spaces. We believe our strength lies in contributing to the rental market with long-term, high-quality developments that bring lasting value to communities. C
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