Robert Campeau

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Robert Campeau (born in Chelmsford, Ontario on August 3, 1923) is a Canadian financier and real estate developer.

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[edit] Early years

His formal education ended in grade eight, at the age of 14. He talked himself into jobs at Inco as a general labourer, carpenter and machinist. In 1949 he entered the residential end of the construction business. His first project was a single home constructed in partnership with his cousin in Ottawa, Ontario.

[edit] Real estate development

In Ottawa, Campeau was able to construct both office complexes and residential subdivisions to accommodate Canada's rapidly expanding civil service. Campeau frequently found himself at odds with Ottawa mayor Charlotte Whitton over planning decisions. Whitton was quoted as saying, "when I look at his (Campeau's) houses, I think perhaps nuclear bombardment might not be such a terrible thing after all." His Campeau Corporation had two main rivals in the residential housing market: Assaly Construction Limited and Minto Developments Inc., the latter owned by the family of future Ottawa mayor Lorry Greenberg. Despite almost constant bitter opposition by Whitton, Campeau developed an outstanding reputation as a high-quality builder and became the most successful in the city. A major street is named after him in the Ottawa suburb of Kanata, much of which he developed.

For many years it was city policy that buildings in the downtown core not be taller than the Peace Tower of the parliament buildings. Campeau found this rule to be unnecessary and was drawn into conflict with city council over large high-rise developments such as Place de Ville.

Due to his excellent relationships to many civil servants and ministers, he was able to have most of his projects approved. He counted amongst his personal friends politicians like Jean Chrétien, Jean Marchand, Marc Lalonde, and Michael Pitfield.

Campeau's real estate development success soon spread outside Ottawa. In Toronto his notable developments included Scotia Tower (the city's second tallest skyscraper) and the Harbour Castle hotel - which helped revitalize the city's waterfront area.

[edit] Corporate take-overs

In the 1980s Campeau embarked on a series of leveraged buyouts (LBOs), first bidding unsuccessfully on the Royal Trust company (now part of the Royal Bank). His brash, confrontational manner made him an outsider to much of the conservative Canadian business establishment.

As his empire expanded, Campeau ventured into the United States, looking for acquisitions that would add shopping mall real estate to his portfolio of assets. Through massive junk bond LBOs which were at their most popular in the mid 1980s, his Campeau Corporation gained control of Allied Stores and Federated Department Stores, owner of Bloomingdale's. Campeau retained famous banker Bruce Wasserstein to assist with the transactions. However, in the overenthusiasm and high leverage that defined banking in the late 1980s, the debt obligations that needed to be covered following the merger were too large and exacerbated by a market downturn that hurt retail sales. Campeau Corporation was unable to meet its debt obligations. Federated and Allied eventually filed for bankruptcy reorganization. The company was eventually acquired by the Reichman brothers who went bankrupt themselves and Campeau Corporation ceased to exist.

Sheltered from creditors because all of his assets were either gifted to his wife lIlsa or in several trusts name, he resided in a lakeside castle in Austria and he became involved in some real estate projects including developing a large subdivision near Berlin, Germany That project failed and Campeau's company went bankrupt 2001. And the monies of the charitable foundation used in his business were lost.

In 1996, Campeau and his wife separated, he first lived in Berlin (presidential suite of Four Seasons Hotel) and then he returned to live in Ottawa in 2001, where he lives now with Christel Dettmann, a former East German politician, with whom he had carried on an affair for several years. He sued his wife for her part of the assets after they signed an agreement as to how the assets should be divided and she fulfilled her part. The divorce proceedings went on for two years, and in the end, an Ontario judge - regardless of an open jurisdictional issue - ordered her to pay him spousal support and turn over family assets, which he signed off before and despite a pre-nuptial agreement with total separation of assets.

[edit] Bibliography

Babad, Michael; Mulroney, Catherine.Campeau- The Building of an Empire,1989, ISBN 0-385-25208-0
Rothchild,John.Going for broke: How Robert Campeau bankrupted the retail industry, jolted the junk bond market, and brought the booming eighties to a crashing halt,1991, ISBN 0-14-017316-1