CBRE's deal to acquire Caledon marks at least the sixth entity-level acquisition announced by the firm since the beginning of 2017. Most recently it announced that it would acquire South Florida-based services firm Brenner Real Estate Group and Australia-based Aurora Projects Pty Ltd., a project advisory and management company.

LOS ANGELES—CBRE Group said Friday it had agreed to acquire a majority stake in Caledon Capital Management Inc.; deal terms were not disclosed. The Toronto-based investment management business manages more than US$7 billion of assets for institutional investors through a combination of direct investments, co-investments, secondaries and primary funds.

CBRE says its 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,” says Ritson Ferguson, CEO of 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.”

The acquisition is expected to close later this year, at which time Caledon will be renamed CBRE Caledon Capital Management Inc. and will operate as a separate business unit under the CBRE Global Investors umbrella. Prior to Caledon's formation in 2006, most of the management team previously worked for Canadian pension plans that are leaders in infrastructure and private equity investing, both specialties of Caledon.

The existing Caledon team will continue to manage the business and will maintain significant long-term ownership. “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,” says David Rogers, founding partner with Caledon.

CBRE's deal to acquire Caledon marks at least the sixth entity-level acquisition announced by the firm since the beginning of 2017. Most recently it announced that it would acquire South Florida-based services firm Brenner Real Estate Group and Australia-based Aurora Projects Pty Ltd., a project advisory and management company.