CDPQ Finances TerraPact's Growth in North America
TerraPact has secured $240m (€228.3m) in senior financing from the Caisse de dépôt et placement du Québec (CDPQ) to expand its real estate portfolio across the US and in British Columbia, Canada.
The investment will also refinance TerraPact’s existing debt structure.
TerraPact is a real estate investment platform specialising in long-term ground leases and rights of way for critical infrastructure assets.
It oversees over 700 assets consisting of long-term ground leases and rights of way. The platform generates stable, long-term cash flows, with each site supporting essential digital, utility and energy infrastructure.
Marc Cormier, EVP and head of fixed income at CDPQ, said: “TerraPact is a strategically positioned ground lease platform which occupies a core position in the infrastructure value chain, delivering connectivity and energy across North America.
“With this transaction, CDPQ is providing a bespoke infrastructure financing solution as sole lender, tailored to propel TerraPact’s growth ambitions over the years to come.”
Ben Myers, CEO of TerraPact, said: “We are excited to continue our partnership with CDPQ. This growth financing will allow us to continue our multi-year strategy of becoming one of America’s premier energy and digital infrastructure landowners. We couldn’t be more excited to move forward with CDPQ’s best-in-class financing team.”
CDPQ issued a press release earlier this week stating it will invest USD 240 million to propel TerraPact’s growth in North America:
CDPQ, a global investment group, and TerraPact, an owner and operator of real estate that underpins America’s wireless, broadband, and energy sectors, announced today the conclusion of an agreement under which CDPQ will provide USD 240 million (CAD 335 million) in senior financing to support the growth of TerraPact’s real estate portfolio across the United States and in British Columbia, Canada. The investment will also refinance TerraPact’s existing debt structure.
TerraPact, a Columbia Capital portfolio company, manages a highly diversified platform comprised of long-term ground leases and rights of way for more than 700 assets. The platform benefits from long-term and resilient cash flows, as each site underprops critical digital, utility and energy infrastructure.
“TerraPact is a strategically positioned ground lease platform which occupies a core position in the infrastructure value chain, delivering connectivity and energy across North America,” said Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ. “With this transaction, CDPQ is providing a bespoke infrastructure financing solution as sole lender, tailored to propel TerraPact’s growth ambitions over the years to come.”
“We are excited to continue our partnership with CDPQ,” said Ben Myers, CEO of TerraPact. “This growth financing will allow us to continue our multi-year strategy of becoming one of America’s premier energy and digital infrastructure landowners. We couldn’t be more excited to move forward with CDPQ’s best-in-class financing team.”
ABOUT CDPQ
At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2024, CDPQ’s net assets totalled CAD 452 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.
CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.
ABOUT TERRAPACT
Founded in 2012 and headquartered in Waltham, Massachusetts, TerraPact is a leading acquirer and manager of real estate assets critical to infrastructure within North America’s wireless, broadband, and energy sectors. TerraPact offers asset owners a unique opportunity to divest and monetize their holdings through flexible and economically rewarding transactions. For more information, please visit terrapact.com.
ABOUT COLUMBIA CAPITAL
Columbia Capital was founded over 30 years ago and, in that time, has developed a repeatable investment model guided by a specialized and experienced team. Columbia focuses on the investments in the digital infrastructure, enterprise technology, and mobility spaces and has raised over $8B in fund commitments. For more information, please visit www.colcap.com.
I'm pretty sure many of you read this press release and wondered what is TerraPact?
It's a right-of-way lease specialist that focuses on wireless infrastructure, digital infrastructure and right of way corridors:
TerraPact owns over 3,000 miles of private right-of-way and a national tower footprint.
From telecom wireline and wireless carriers to energy transport, we have a diverse set of tenants who demand speed, reliability and a cost-effective approach to network buildouts. We understand this and strive to serve our customers and their network needs.
If you know anything about what a servitude is, you will understand that companies use right-of-way agreements to carry out their activities and this is what TerraPact specializes in.
It's definitely in the right niche sectors and CDPQ is financing its growth:
“TerraPact is a strategically positioned ground lease platform which occupies a core position in the infrastructure value chain, delivering connectivity and energy across North America,” said Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ. “With this transaction, CDPQ is providing a bespoke infrastructure financing solution as sole lender, tailored to propel TerraPact’s growth ambitions over the years to come.”
Lastly, I note that prior to joining TerraPact, TerraPact CEO Ben Myers was Vice President of Corporate Development and Property Management at American Tower, a Fortune 500 company, where he led all domestic acquisition efforts relating to telecommunication and real estate assets:
In addition to his corporate development responsibilities, Ben also led American Tower’s property management team focused on managing underlying real estate rights from private and public property owners on over 40,000 assets. Ben was integral member of American Tower’s acquisition and property groups having various leadership roles over a 13 year period with direct experience in over $10 billion worth of real estate infrastructure acquisitions.
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 224,000 communications sites and a highly interconnected footprint of US data center facilities.
Clearly he understands extremely well the wireless and digital infrastructure business and the role right-of-way corridors play there.
Below, TerraPact presents railroad corridor owners with the unique opportunity to monetize their real estate occupancy agreements. This allows owners to refocus and optimize primary rail operations.
Watch this clip as it explains well what the company does and how they add value to corridor owners.
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