CBRE SPAC Makes Solar Panel Play in $1.6B Deal

Altus Power is merging with a CBRE-sponsored special-purpose acquisition company in a deal that is valued at $1.58 billion.

Altus, which builds and operates solar panels found at commercial properties, will gain access to CBRE’s client list and capital for expansion. Many of the properties managed by CBRE have parking lots and rooftops that could accommodate solar panels.

“We are very excited about the opportunity to supply real estate investors and occupiers—many of whom will come to us through our relationship with CBRE—with clean energy savings and sustainability benefits using a data-driven approach to design and build onsite solar generation facilities, energy storage, and EV-charging for vehicles and fleets,” Altus co-CEO Lars Norell said in prepared remarks. He added that additional benefits would accrue as technology continues to improve, noting that in a networked future these systems can “work in tandem and across multiple buildings to produce value for commercial, industrial, municipal and community solar customers.”

The Altus SPAC comes when many companies are looking for ways to deliver on ESG promises.  In 2020, public funds, private equity firms, high net worth investors and nonprofit companies aggressively increased ESG commitments. Many are acknowledging the critical role that ESG practices will play in the future of real estate investment. 

And since new construction has carbon implications, Lori Mabardi, senior director, ESG Research, JLL, notes that many owners are considering retrofitting properties to make them less carbon intensive.” As part of this effort, they may install solar panels on rooftops or electric vehicle charging stations.