REAL ESTATE PROFILE
Q&A with Andrew Lutfy
Andrew Lutfy, the vibrant president and CEO of Carbonleo Real Estate, is a proud Montrealer. He is also president, CEO and sole owner of the Groupe Dynamite retail empire. Andrew grew up in Town of Mount Royal and started his first company, washing and detailing cars, when he was eight years old. By age 12, business cards displayed his company name: Perfection Reflection.
We met at the Groupe Dynamite head office on Ferrier St.
How did you get into retail?
When I was 18 (in 1982), I moved to Montreal North and got a job as a stock boy at a jeans and T-shirt store, in Place Versailles, called La Station. The owner had been one of my car-detailing customers. He became my boss and later my father-in-law.
Expansion began with branches in St-Jérôme and Westmount. Next was a store, which we named Dynamite, in Carrefour Laval. By 1998 we had 100 stores across Quebec and two years later we celebrated the distinction of having retail representation in every province.
In 2001 we opened our 200th store. Along the way, I evolved from stock boy to operations manager. In 2002, I bought the company outright. Today, we have 400 stores — in 10 countries — under the Dynamite and Garage banners. We are still all about jeans and tees.
What is the link to real-estate development?
The common thread is my love for projects. I have always enjoyed construction. When I was a kid, my uncle built a house. I spent time with him and learned about welding, concrete work, plumbing and electricity.
The retail business has a strong construction component. Over the years, I got involved in real estate, as a passive investor. When the right opportunity arose, I leapt into active investment.
Can you explain passive versus active investment?
Passive investment entails putting up money without having a say in day-to-day decisions. There may be opportunities to offer input, but ultimately you are not in control; you have entrusted someone else to manage and develop the assets. Active investment is the opposite. You are accountable for everything. Before investing passively I ensure my partner is honest, has integrity, great entrepreneurial skills and a solid track record.
How did you become president and CEO of Carbonleo?
In 2008 I was offered the opportunity to invest in new phases of Quartier Dix30, in Brossard. I agreed and began to invest passively. One condition was that I occupy a prominent seat on the development committee and attend all meetings. The lead developer, Jean-François Breton, was a man I had known for five years. He was my retail landlord at Dix30. It was a great relationship. He possesses all the traits I value and, in 2012, Jean-François and I launched Carbonleo together. In addition to the ever-evolving Quartier Dix30, another of our projects has been the luxurious Four Seasons Hotel and Private Residences, in downtown Montreal.
Tell me about Four Seasons.
It is ideally situated on rue de la Montagne at de Maisonneuve, in the Golden Square Mile, and will serve as a north-south link between Griffintown, Quad Windsor (L’Avenue; Tour des Canadiens) and the museum district. Four Seasons will rejuvenate the downtown core and provide Montreal with a much-needed commercial epicentre.
Four Seasons is a luxury ecosystem. It consists of a new flagship Holt Renfrew store (Holt Renfrew & Co.) and features other high-end retailers. The five-star Four Seasons Hotel will have 166 rooms, a grand ballroom, spas, restaurants and valet parking. The crowning jewels are 18 magnificent residences, which will occupy the top five floors and offer stunning views. They are 50 per cent sold (nine months after their launch), and occupancy is scheduled for the end of 2018.
What’s next for Carbonleo?
Royalmount is our $1.7-billion project close to major arteries (Highways 40 and 15) and public transit (métro de la Savane). It will consist of 85 acres of commercial and retail development, including five hotels and a movie theatre. There is no housing component to Royalmount, but it will generate great residential density all around.
What do you enjoy in your spare time?
I have two wonderful children — Jessica, 25, and Alex, 24. I spend weekends with them, and their significant others, at our family cottage. We enjoy outdoor activities: paddleboarding, hiking, snowshoeing. And we love to cook! I am the barbecue guy and can grill pretty much anything. I also like to bring a little something sous-vide into the mix. Weekends, up north, are the only time I can really decompress, breathe and relax.
What puts the spring in your step?
There is nothing I find more thrilling than delivering a project. Some of ours are quite complicated and not for the faint-of-heart. At the office, I am all about employee satisfaction. On a personal level, I enjoy making my loved ones happy. Work has never been about accumulating wealth. The money is a consequence.