IFM continues global infra drive with appointment, acquisition

IFM Investors head of infrastructure for North America will retire following an 18-year tenure, with the investment company simultaneously announcing the acquisition of a majority stake in a UK-based company from Canadian Pension Plan Investments (CPP Investments)  and OMERS.

Julio Garcia will step down from his executive responsibilities following a transition period, IFM said, but he will remain as a member of the firm's investment committee.

Commenting, IFM global head of infrastructure Kyle Mangini said Garcia had been instrumental in the global buildout of the firm.

"Julio has made an extraordinary contribution to IFM since joining in 2008. He has helped build our presence in North America, led major investments and has been instrumental in establishing IFM as a respected global infrastructure investor," Mangini said.

"Beyond his professional achievements, Julio has been a trusted colleague, mentor and leader whose integrity, judgement and commitment have had a lasting impact on our business and our people.

"We are deeply grateful for everything he has contributed over the past 18 years."

Current executive director, infrastructure Michael Kulper will succeed Garcia following the transition period. He joined IFM in 2013 and has played a key role in developing IFM's infrastructure equity business.

In particular, Kulper led the origination of IFM's toll road portfolio, which currently represents approximately $40 billion (US$28bn) in net asset value.

Mangini welcomed Kulper's appointment.

"Michael is a highly respected and experienced infrastructure investor who has been a key contributor to IFM's success for more than a decade," Mangini said.

"We are confident he will build on Julio's outstanding legacy and continue delivering strong outcomes for our clients and the working people they represent."

Meanwhile, IFM, via its managed fund, has acquired majority stake in Associated British Ports (ABP), a UK port operator, from CPP Investments and OMERS. Both entities have agreed to sell their respective 33.9% and 30% stakes in the company.

Financial terms were not disclosed.

ABP is the operator of 19 facilities, handling approximately 25% of UK seaborne trade, while providing support for over half of UK's offshore wind and catalyses investment and job opportunities across coastal communities.

Mangini said the transaction reflects IFM's commitment to mobilising pension capital into UK infrastructure.

"We are pleased to have reached an agreement where a fund managed by IFM would acquire a majority stake in ABP, the UK's largest ports group with strategically located assets serving some of the country's most important trade and industrial regions," Mangini said.

"We look forward to supporting continued development of ABP's infrastructure and operations, drawing on IFM's long-term investment approach and experience across ports and other essential infrastructure assets.

"We are excited to work closely with ABP's management team, employees and our fellow shareholders to support the company's continued success."

ABP chief executive Henrik Pedersen said: "Today marks a bold new chapter for ABP. Since my arrival at ABP eight years ago, I have experienced firsthand the support for our business and the execution of growth opportunities provided by CPP Investments and OMERS."

"On behalf of the entire company, I would like to extend my profound appreciation for their partnership. Attracting investment from a fund managed by IFM Investors is a powerful endorsement of our business, our people and our strategy.

"We are excited to unlock further growth opportunities, together with IFM Investors and our other shareholders, continuing ABP's long-term investment benefitting our customers, our local communities, and the UK."

The transaction is subject to customary approvals and is expected to complete in 1H27.