CBRE Group, Inc. Announces Definitive Agreement to Acquire Majority Stake in Caledon Capital Management
June 09 2017 - 8:45AM
Business Wire
Acquisition to Expand Suite of Infrastructure
Investment Programs
CBRE Group, Inc. (NYSE:CBG) today announced that it has entered
into a definitive agreement to acquire a majority interest in
Caledon Capital Management Inc. (Caledon), a Toronto-based
investment management business specializing in private
infrastructure and private equity investments.
Upon closing, Caledon will be renamed CBRE Caledon Capital
Management Inc. and will operate as a separate business unit under
CBRE’s independently operated investment management subsidiary,
CBRE Global Investors. The Caledon management team comes with deep
and successful experience in infrastructure and private equity
investing. Prior to Caledon, most of the management team previously
worked for Canadian pension plans that are leaders in
infrastructure and private equity investing. This team will
continue to manage the business and will maintain significant
long-term ownership.
Caledon’s team of more than 30 people in Toronto manage
approximately US$7 billion (over CA$9 billion) of assets for
institutional investors through a combination of direct
investments, co-investments, secondaries and primary funds. The
pending addition of Caledon will complement the suite of investment
solutions offered by CBRE Global Investors and its listed equity
management arm, CBRE Clarion Securities.
“Investors are increasing their allocations to alternative
investments, including real assets,” said Ritson Ferguson, CEO,
CBRE Global Investors. ”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.”
“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,” said David Rogers, Founding Partner,
Caledon.
Closing is expected to occur later this year and is subject to
regulatory approval and other customary closing conditions.
About CBRE Group and CBRE Global
Investors
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500
company headquartered in Los Angeles, is the world’s largest
commercial real estate services and investment firm (based on 2016
revenue). The company has more than 75,000 employees (excluding
affiliates), and serves real estate investors and occupiers through
approximately 450 offices (excluding affiliates) worldwide. CBRE
Group offers a broad range of integrated services, including
facilities, transaction and project management; property
management; investment management; appraisal and valuation;
property leasing; strategic consulting; property sales; mortgage
services and development services. CBRE Global Investors is an
independently operated affiliate of CBRE Group, Inc. and is one of
the world’s largest real estate investment management firms with
$86.5 billion in assets under management as of March 31, 2017.
Please visit our website at www.cbre.com.
*Assets under management (AUM) refers to the fair market value
of real estate-related assets with respect to which CBRE Global
Investors provides, on a global basis, oversight, investment
management services and other advice, and which generally consist
of investments in real estate; equity in funds and joint ventures;
securities portfolios; operating companies and real estate related
loans. This AUM is intended principally to reflect the extent of
CBRE Global Investors' presence in the global real estate market,
and its calculation of AUM may differ from the calculations of
other asset managers.
About Caledon Capital Management
Inc.
Caledon is a leading infrastructure and private equity solutions
provider. The firm seeks to create long-term value for its clients
by accessing and managing high-quality investment opportunities and
building comprehensive and customized infrastructure and private
equity portfolios. Caledon’s business model is to combine direct
investments, co-investments, secondary investments, and primary
fund investments in a manner to suit each client’s unique
investment objectives. The firm currently provides its services
through customized separately managed accounts, portfolio
management advisory solutions and pooled funds. Since its inception
in 2006, the Caledon team has grown to over 30 people and manages
over CA$9 billion of assets on behalf of 15 clients across North
America.
Forward-Looking Statements
Certain of the statements in this release regarding the
acquisition of the real estate investment management assets and
operations of Caledon Capital Management Inc. (Caledon) that do not
concern purely historical data are forward-looking statements
within the meaning of the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are made based on our management’s expectations and
beliefs concerning future events affecting us and are subject to
uncertainties and factors relating to our operations and business
environment, all of which are difficult to predict and many of
which are beyond our control. Accordingly, actual performance,
results and events may vary materially from those indicated in
forward-looking statements, and you should not rely on
forward-looking statements as predictions of future performance,
results or events. Numerous factors could cause actual future
performance, results and events to differ materially from those
indicated in forward-looking statements, including, but not limited
to, our ability to successfully integrate Caledon with the existing
operations of CBRE Global Investors as well as other risks and
uncertainties discussed in our filings with the U.S. Securities and
Exchange Commission (SEC). Any forward-looking statements speak
only as of the date of this release. We assume no obligation to
update forward-looking statements to reflect actual results,
changes in assumptions or changes in other factors affecting
forward-looking information, except to the extent required by
applicable securities laws. If we do update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements. For additional information concerning
factors that may cause actual results to differ from those
anticipated in the forward-looking statements and other risks and
uncertainties to our business in general, please refer to our SEC
filings, including our Form 10-K for the fiscal year ended December
31, 2016, and our Form 10-Q for the quarter ended March 31, 2017.
Such filings are available publicly and may be obtained from our
website at www.cbre.com or upon request from the CBRE Investor
Relations Department at investorrelations@cbre.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170609005356/en/
CBRE Group, Inc.Steve Iaco, 212-984-6535Corporate
CommunicationsorRobert McGrath, 212-984-8267Media
RelationsorCBRE Global InvestorsPam Barnett,
213-683-4368Corporate Communications
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