CBRE Investment Management, on behalf of a fund managed by its Private Infrastructure division, has acquired a majority stake in
Geonova Oy (“Geonova” or the “Company”) a fast-growing Finnish geothermal energy business that provides decentralised heating and cooling services using ground source heat pump (GSHP) technology.
Geonova offers clients full turn-key heating solutions for 15-20 years or more, covering system design, installation, and management. The demand for these systems is set to continue to grow as new building efficiency regulations come into play across European markets. This is particularly important in Finland, which is aiming for net zero by 2035 – one of the most ambitious net zero targets worldwide. Also, Finland has the highest per capita consumption of heat in the EU.
CBRE Investment Management (“CBRE IM”) has acquired an 80% stake in the Company from current shareholders Helsinki-based Helen Oy (“Helen”) and LämpöYkkönen Oy (“L1”). L1 will retain a 20% stake in Geonova. CBRE IM has also made a further capital commitment to fund the future expansion of the business. The investment will form a core part of the strategy of CBRE IM’s Private Infrastructure division to invest in infrastructure assets and technologies that support the decarbonisation of the built environment. CBRE IM intends to leverage the full capabilities of the CBRE platform to grow the Company, by bringing exceptional infrastructure and real estate capabilities together.
Andreas Köttering, Head of Private Infrastructure 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.”
CBRE IM has also appointed a highly experienced industrial leader in Finland, Vesa Tempakka as a board director and Chair of Geonova. Vesa brings a wealth of experience in the Finnish energy sector, most recently as CEO of Neova (formerly Vapo), a Finnish company focused on renewable energy solutions and other businesses. The Geonova management team has extensive experience in ground heating industry and the broader energy sector in Finland. Vesa’s decades of industry experience will serve to enrich the team’s impressive industry knowledge and sector expertise as the business steps up to meet growing demand from its customer base.
“Geonova has already established itself as a leading player in the GSHP sector in Finland,” commented Kerron Lezama, Senior Director, Infrastructure Investments of CBRE IM. “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.”
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $142.5 billion in assets under management* as of June 30, 2024, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management 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 Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.
About Helen Ltd
Helen Ltd helps to make everyday life a little easier for over 560,000 customers in Finland. In addition to heat, cooling and electricity, we offer solutions for regional and renewable energy and electric transport. We are developing a smarter, carbon-neutral energy system that enables everyone to produce, use and save energy with respect for the environment. We aim to achieve 100% carbon neutrality in our energy production by 2030. Let’s join forces and turn the opportunities of a new energy era into reality.
