Latest news with #BoonChinHau
Independent Singapore
17-07-2025
- Business
- Independent Singapore
GIC backs Germany's Techem Group in deal valued at S$9.9 bllion
SINGAPORE: Singapore's sovereign wealth fund GIC is taking a leading role in real estate decarbonisation by investing in Techem. This move aligns with the fund's innovative findings on climate adaptation. GIC joined Partners Group, TPG Rise Climate, and Mubadala in the investment in an enterprise value (EV) of around €6.7 billion (S$9.99 billion). EV measures a company's total value. This includes its capitalisation, short- and long-term, as well as any cash equivalents on the company's balance sheet. GIC's recent research shows a changing economic landscape: global annual revenues from climate adaptation solutions are expected to rise from US$1 trillion today to US$4 trillion by 2050. Notably, US$2 trillion of this growth is directly linked to global warming, which is often ignored in traditional industry forecasts. Boon Chin Hau, GIC's Chief Investment Officer for Infrastructure, views Techem as a prime example of this new opportunity. 'We're not just investing in a company but in a key solution to global carbon challenges,' he explains. This investment reflects a wider strategic vision where climate adaptation becomes a trillion-dollar market. See also GIC bracing for low returns due to trade war The potential of this investment is significant. GIC predicts that the investment opportunity across public and private markets will grow from US$2 trillion today to US$9 trillion by 2050. Of this, US$3 trillion comes from growth directly connected to global warming, highlighting the economic need for climate solutions. Techem has 62 million connected devices in 18 countries and manages energy services for 13 million homes. This matches the type of scalable, technology-based solution that GIC sees as essential. The real estate sector produces 40% of global CO2 emissions, making this investment both financially sound and environmentally necessary. While GIC's model cautiously assumes that adaptation demand will respond to events, the fund believes growing awareness of climate risks could prompt quicker action. Techem's digital infrastructure, which includes AI-driven analytics and smart meters, represents the innovative solution that could drive this progress. The investment leverages Techem's solid growth history. Since 2018, it's grown its revenues to over €1 billion, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) rising by 50%, metrics that fit well with GIC's forward-thinking investment approach. 'Our partnership with Partners Group, TPG, Mubadala, and Techem's management team will accelerate the business's strategy, unlocking future growth,' Hau emphasises, underlining how the investment connects technological progress with climate adaptation. The deal, expected to finalise in the second half of 2025, places GIC at the centre of a transformative economic opportunity. As buildings worldwide get ready for stricter environmental regulations, Techem's digital infrastructure becomes a vital asset in the US$4 trillion climate adaptation market. In the complicated world of global infrastructure investing, GIC has once again shown its skill in finding value at the key intersection of technology, sustainability, and strategic insight, turning climate challenges into investment chances. Commenting on the deal, Matthias Hartmann, CEO of Techem, stated: 'The new ownership consortium is ideal for Techem because it ensures continuity while also providing fresh impulses for the implementation of our strategy.' 'We look forward to working with them with on the next phase of our growth story as we capitalise on our momentum to further expand our position as the leading platform for the digitalisation and decarbonization of the building sector in Europe and beyond,' he adds.
Arabian Post
15-07-2025
- Business
- Arabian Post
Consortium Secures €6.7bn Techem Buyout to Accelerate Digital Decarbonisation
Arabian Post Staff -Dubai Abu Dhabi's Mubadala Investment Company, Partners Group, GIC and TPG Rise Climate have agreed a €6.7 billion deal to acquire Techem, the Frankfurt-based energy‑efficiency firm, in a strategic move poised to reinforce digital-first submetering and sustainability in European real estate. The transaction—set to conclude in the second half of 2025, pending regulatory approvals—will see Partners Group's infrastructure arm retain a controlling stake, while Mubadala, GIC and TPG Rise Climate take minority positions alongside, marking a rotation in ownership strategy. The sale ends the tenure of the prior consortium including La Caisse and Ontario Teachers' Pension Plan, which supported Techem since 2018. ADVERTISEMENT Techem, founded in 1952 and based in Eschborn, operates in 18 countries and serves more than 440,000 customers with over 13 million dwellings under its care. Approximately 62 million devices are currently installed across its footprint. Under Partners Group's 2018 private equity-led acquisition, Techem grew its sales beyond €1 billion and increased EBITDA by nearly 50%. This expansion solidified its role as a leading provider of submetering services—a crucial component in the decarbonisation of real estate, a sector responsible for around 40% of global CO₂ emissions. The new ownership strategy aims to deepen digital integration, expand offerings to include smart meters, and capitalise on evolving regulations, rising energy prices and corporate net-zero commitments. 'Techem is at the forefront of energy services and is uniquely positioned to drive energy efficiency within the real estate sector,' noted Boon Chin Hau, CIO of GIC Infrastructure, underscoring the group's confidence in Techem's strategic outlook. Abdulla Mohamed Shadid, Head of Energy and Sustainability at Mubadala's private equity platform, emphasised the importance of helping find solutions to global challenges, reflecting the company's ongoing shift toward purpose-driven capital deployment. Implementation will include further digitalisation of operations and service expansions tailored to improve building efficiency. This deal, valued at €6.7 billion, ranks among the year's largest private‑market transactions globally. Techem's technology deploys submetering for heating and water, enabling accurate billing and encouraging lower consumption. Their low‑investment, non‑invasive approach aligns well with landlords and property owners seeking cost-effective energy solutions. Trends in European regulation and growing pressure on emissions reduction give the firm a favourable market tailwind—a factor the new consortium appears ready to exploit. Despite an earlier attempt by TPG to buy out Techem independently in October 2024, that bid fell through after EU antitrust scrutiny. The current agreement reflects a more collaborative structure that shares risk and maintains continuity under infrastructure stewardship. Commenting on continuity, Techem's CEO Matthias Hartmann stated that the company's strategic direction would remain unchanged, emphasising a steady course under the incoming partners. The transaction parallels broader investment patterns in smart‑energy firms. Over the past year, GIC has partnered with investors such as EQT to acquire UK smart‑meter provider Calisen—a sign of growing interest in climate‑aligned infrastructure. With assets under management spanning global private markets, Partners Group leads the infrastructure side with over US$27 billion, while Mubadala and GIC bring sovereign-backed financial clout, and TPG Rise Climate adds dedicated impact‑investment expertise; together they form a powerful alliance geared towards scaling energy efficiency across European real estate.
