A fund managed by CBRE Investment Management’s private infrastructure arm has acquired an 80% stake in Finnish geothermal energy business Geonova.
The fund has acquired the controlling interest in Geonova from current shareholders Helsinki-based Helen and LämpöYkkönen (L1) and has pledged additional funds to support its growth.
L1 will retain a 20% stake in the business which provides decentralised heating and cooling services using ground source heat pump (GSHP) technology.
As part of the deal, CBRE IM has also appointed Vesa Tempakka as a board director and chair of Geonova. Tempakka was most recently CEO of Neova, a Finnish company focused on renewable energy solutions and other businesses.
Andreas Köttering, head of private infrastructure for Europe at CBRE IM, said: “Investing in businesses like Geonova demonstrates our strategy of decarbonising the built environment. We can support that strategy by bringing to bear the capabilities of our entire CBRE platform.”
Kerron Lezama, senior director of infrastructure investments at CBRE IM, said: “Geonova has already established itself as a leading player in the GSHP sector in Finland.
“We are excited to be able to work with Geonova’s excellent management team and Vesa to support its future growth as low carbon heating systems play a greater role in making buildings more energy efficient.”
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