CBRE Caledon Capital Management (CBRE Caledon) is set to acquire from American Infrastructure Funds and other shareholders, a majority equity interest in CitySwitch Tower Holdings (CitySwitch), a build-to-suit wireless tower developer and operator. CBRE Caledon, an infrastructure and private equity firm based in Toronto, Ontario, is making the investment on behalf of one of its funds and a separately managed account. CBRE Caledon is a business unit within CBRE Group’s investment management subsidiary, CBRE Global Investors.
CitySwitch has a significant tower portfolio diversified across 25 states in the eastern United States and is in 72 of the top 100 metro areas. The company specializes in railroad asset development along rail corridors with access to over 40,000 track miles of railway rights-of-way in 43 states. As is a pioneer in railroad asset development, CitySwitch delivers unique and differentiated tower locations to national and local carriers such as AT&T and Southern Linc, and railroad tenants including CSX and Norfolk Southern, along with government agencies.
FCC filings show that CitySwitch currently has 224 sites, with 152 built and 72 granted but not constructed. The company has developed and manages over 500 towers on public and private properties. The newly constructed portfolio of operating towers has long-term anchor contracts with more than 85 years of remaining contract life.
The company is well-positioned to expand its build-to-suit pipeline and accelerate its tower count through organic growth. “CitySwitch is poised to benefit from the unprecedented long-term growth opportunity in wireless infrastructure,” says Noi Spyratos, Head of Private Infrastructure Portfolio Management for CBRE Caledon. “The company’s unique access to rail corridors has resulted in an attractive asset base with high potential for future lease-up activity.”
CitySwitch management will retain an equity stake in the company, and the business will continue to be led by President & CEO, Rob Raville. “With American Infrastructure Funds’ strong support, CitySwitch has created one of the fastest-growing organically built wireless tower portfolios in the U.S.,” Raville says. “The CitySwitch team is very excited to partner with CBRE Caledon in our journey ahead. We look forward to building on our strong momentum of bringing highly differentiated build-to-suit and colocation solutions to our carrier customers as they expand and densify their digital networks.”
Terms of the deal were not disclosed. The acquisition is expected to close in late September or early October 2021.
By John Celentano, Inside Towers Business Editor
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