#Canada #Montreal #CDPQ #TerraPact #Columbia Capital

CDPQ and TerraPact Unveil $240 Million Investment Deal

In a significant move to bolster the infrastructure landscape in North America, CDPQ has announced a remarkable investment of USD 240 million in TerraPact. This strategic partnership aims to enhance TerraPact's expansive portfolio, which is pivotal for the wireless, broadband, and energy sectors, establishing a stronger foothold across the United States and British Columbia, Canada. This investment is poised to not only strengthen TerraPact's real estate assets but also to refinance its existing debt, enhancing financial stability and growth potential.

TerraPact's Prominent Position

Founded in 2012 and based in Waltham, Massachusetts, TerraPact operates as a leader in acquiring and managing crucial real estate assets that support North America's underlying infrastructure. This encompasses long-term ground leases and various rights of way facilitating essential digital and energy services. With over 700 assets in its portfolio, TerraPact establishes a robust platform designed to generate sustainable cash flows essential for infrastructural resilience.

The platform’s diverse asset base enables it to thrive within a competitive and evolving market, drawing interest from substantial investors, including CDPQ. Reflecting on the agreement, Marc Cormier, Executive Vice-President at CDPQ, highlighted how TerraPact plays a strategic role in the infrastructure value chain, contributing significantly to connectivity and energy supply across the region.

A Tailored Financing Solution

The USD 240 million financing deal represents a custom solution catering directly to TerraPact's growth aspirations. As the sole lender, CDPQ is not merely providing funds; they are also investing in the future of infrastructure by supporting a company that underpins critical digital and energy networks. This bespoke financing approach indicates CDPQ's commitment to enhancing the operational capacity of entities that are essential for public infrastructure.

Ben Myers, the CEO of TerraPact, expressed enthusiasm regarding this partnership, acknowledging that the financing will significantly bolster the company's strategy to emerge as a dominant owner of digital and energy infrastructure in America. This sentiment underlines the collaborative spirit between the two organizations, aligning their goals for a progressive future.

About CDPQ

As per its mandate, CDPQ acts as a global investment group managing considerable assets on behalf of public pension and insurance plans. With its net assets totaling CAD 452 billion as of June 30, 2024, CDPQ plays a crucial role in market dynamics through investments that seek sustainable, long-term returns. Their areas of operation encompass private equity, infrastructure, real estate, and private debt, positioning them as a formidable force in financial markets.

Through partnerships like the one with TerraPact, CDPQ aims to drive performance and positive progress within the sector, ensuring that their investments yield long-term societal and economic benefits.

TerraPact's Growth Ambitions

TerraPact's dedication to growth within the infrastructure sector is further supported by its association with Columbia Capital, an investment firm with a profound history in the telecommunications sector. Columbia Capital’s expertise aids TerraPact's operational strategies, enhancing their ability to attract investments and efficiently manage their portfolio.

In conclusion, this USD 240 million investment by CDPQ signifies a vital step in nurturing North America's energy and digital infrastructure landscape. As both companies look to the future, their partnership exemplifies how collaborative financial solutions can elevate infrastructure capabilities in a rapidly changing economic environment. The focus remains on driving value, ensuring sustainability, and bridging the gap in essential connectivity and energy services for countless communities across North America.