CBRE Caledon Expands Digital Infrastructure Portfolio with Investment in Fiber Network Developer and Operator
08 Apr 2021
CBRE Caledon Capital Management Inc. (“CBRE Caledon”), the private infrastructure investment arm of CBRE Global Investors, has entered into a definitive agreement to acquire WAN Rack LLC, a fiber operator and developer providing broadband connectivity services, primarily to K-12 school districts across the United States. CBRE Caledon is making the investment on behalf of a fund sponsored by the firm as well as one of its separately managed accounts.
WANRack specializes in developing custom-built private fiber Wide Area Networks under long-term contracts backed by the U.S. Government. The company’s dedicated private fiber networks dramatically enhance the education experience of over 300,000 students today, with the opportunity to also address the “Homework Gap.”
With more than 600 miles of newly constructed, 100%-owned fiber network infrastructure, WANRack currently serves more than 450 schools with tailored fiber lease solutions. The company plans to leverage its network in core markets to expand into the commercial segment.
“WANRack has established itself as a vital player in the U.S. fiber space by building and owning dedicated fiber networks, which connect K-12 schools in underserved communities with private, high-speed broadband connectivity,” said Noi Spyratos, Partner at CBRE Caledon. “We are delighted to partner with an experienced management team to support the continued growth in E-Rate and build out the company’s commercial fiber strategy.”
WANRack’s management will retain an equity stake in the company, and the business will continue to be led by its original founder and CEO, Rob Oyler.
“We are excited to join with CBRE Caledon at this stage of our growth,” Oyler said. “This investment from one of the leading infrastructure investors will allow WANRack to continue our aggressive growth plans across the U.S. for the foreseeable future.”
Stephen Dowd, Chief Investment Officer, Private Infrastructure Strategies for CBRE Global Investors, added: “We are excited to complete this investment on behalf of one of our funds and separately managed account clients as we continue to invest in digital assets and infrastructure for the new economy. We believe the business, supported by the long-term nature of the contracts, will provide the resilient and non-cyclical characteristics that our investors are seeking.”
The acquisition of WANRack is expected to close in the second quarter of 2021. CBRE Caledon was advised in this transaction by financial advisor RBC Capital Markets, legal counsel Morgan, Lewis & Bockius, commercial advisor ACM Atlantic and technical advisor Broadband Success Partners.
About CBRE Caledon
CBRE Caledon Capital Management Inc. is a leading infrastructure and private equity solutions provider. We create long-term value for clients by accessing and managing high-quality investment opportunities and building comprehensive infrastructure and private equity portfolios. Today, our dedicated team of 52 professionals represents $8.5 billion on behalf of institutional investors globally. CBRE Caledon is a separate business unit within CBRE’s independently operated investment management subsidiary, CBRE Global Investors. For more information about CBRE Caledon, please visit www.cbrecaledon.com.
About CBRE Global Investors
CBRE Global Investors is a global real assets investment management firm with $122.7 billion in assets under management* as of December 31, 2020. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2020 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees serving clients in more than 100 countries. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments 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 assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers.