BRE Investment Management, through its Private Infrastructure team, is to acquire Connect Bus, one of the largest privately owned bus operators in Sweden and the largest within Access Mobility Transport Services.
This investment aligns with the firm’s commitment to delivering sustainable real asset solutions.
CBRE Investment Management is making the investment on behalf of one of its funds as well as some of its separately managed accounts. The acquisition represents CBRE Investment Management’s third infrastructure investment in Nordic bus operators, following the recently announced agreement to acquire Torghatten Land, one of Norway’s largest bus operators, and its January 2021 acquisition of Karlssonbuss, a leading bus operator in southern Sweden. Through the acquisition of Karlssonbuss and the proposed acquisitions of Torghatten Land and Connect Bus, CBRE Investment Management will establish a leading resilient and sustainable Nordic bus platform that benefits from long-term availability-based contracts with Public Transport Authorities (PTA) and expertise in operating EV buses.
With more than 900 vehicles, 30 depots and 1,130 employees across middle and southern Sweden, Connect Bus is a well-established operator in the Swedish market with operations dating back to 1927. Connect Bus provides availability-based contracted public bus and access mobility services to Public Transport Authorities (PTA) and school bus services to municipal authorities.
The bus operator is dedicated to sustainable transportation with the fleet currently running on biodiesel and compressed bio gas and, with the assistance of CBRE Investment Management, expects to transition its fleet to electric in the next five to 10 years.
“The acquisition of Connect Bus gives us an attractive opportunity to grow our Nordic bus transportation platform and invest in a growing, non-cyclical market. With a proven track record and solid industry relationships, Connect Bus is a strong addition to our platform and complements our existing Nordic bus operator investments,” says Andreas Köttering, Head of Private Infrastructure, Europe, at CBRE Investment Management. “With our investment, we are able to assist with Connect Bus’ green transition and efforts to reduce commuter emissions. This not only is one of the key drivers for the growth of the Swedish public transport market, it is also in keeping with our own commitments to deliver sustainable real asset solutions.”
“We are very pleased that together with CBRE Investment Management and our new Nordic colleagues, we will create a platform with growth potential while at the same time continuing to be a stable and long-term player in the market,” says Christian Plyhm, Group CEO at Connect Bus. “With CBRE Investment Management as a partner, we see excellent opportunities to develop our concept so that we can offer our customers and stakeholders green, sustainable transport solutions”,
The acquisition of Connect Bus is subject to customary closing conditions and regulatory approvals and is expected to close in Q4.
CBRE Investment Management was advised in this transaction by financial adviser, Deloitte, and legal counsel, Mannheimer Swartling. Connect Bus was advised by financial adviser, PwC, and legal counsel, Wistrand.
