CBRE Global Investors, one of the world’s largest real estate investment managers, is to expand into infrastructure.
Its parent CBRE Group said it had entered into a definitive agreement to acquire a majority interest in Caledon Capital Management, a Toronto-based investment management business that specialises in private infrastructure and private equity investments.
Upon closing, Caledon will be renamed CBRE Caledon Capital Management and will operate as a separate unit within the CBRE Global Investors business.
The move will bring CBRE Global Investors in line with other investment management companies that are bringing together real estate and infrastructure activities under one organisation.
It already invests in listed infrastructure through CBRE Clarion Securities, but has yet to move into private infrastructure.
Ritson Ferguson, CEO of CBRE Global Investors, said: “Investors are increasing their allocations to alternative investments, including real assets.
“Caledon’s market-leading investment solutions are a logical extension to our existing suite of real estate and infrastructure investment solutions, enhancing our position as an industry leader.”
Caledon has a team of more than 30 people in Toronto and manages more than CAD9bn (€5.98n) in assets for institutional investors in the form of direct investments, co-investments, funds and secondary-market investments.
It was founded in 2007 by David Rogers, who previously worked for the Ontario Municipal Employees Retirement System (OMERS).
Rogers said: “CBRE’s global reach and resources will improve Caledon’s access to more and larger quality investment opportunities around the world.
“This will enhance our ability to continue to deliver attractive returns for our clients as infrastructure investing becomes increasingly global.”