How a Castlepines Global Equity deal comes together
Castlepines is a private investment company, established in 1991 and headquartered in Monaco, that invests its principal partners' own capital in large, income-producing real estate and infrastructure assets. Pension funds and insurance company institutions co-invest alongside Castlepines and hold their own stakes. Castlepines does not manage money on behalf of other institutions.
- Minimum project
- $100M
- USD, EUR or GBP equivalent
- Funding
- Up to 100%
- Equity, not debt
- SPV ownership
- 50 / 50
- Typical split with sponsor, can be flexible
- Horizon
- 20–40 yrs
- Long-term hold
The partner
An investor, not a lender
Castlepines funds up to 100% of acquisition or development cost, entirely in equity, and takes a direct ownership stake in the project SPV alongside the sponsor, typically 50/50 but flexible. It is an investor, not a lender, with an investment horizon of 20 to 40 years.
Each project is consolidated into a dedicated special purpose vehicle (SPV). An Investment Grade Rated (IGR) guarantor serves as surety. That can be a government, a company with a strong S&P or Moody's rating, a rights holder, or a bank. A partner bank acts as the exclusive banking home for the project.
Once a deal is underway, due diligence typically takes 4 to 6 weeks. A tier-one binding letter, a new SPV or JV, and 100% of the agreed funding are typically in place within 8 to 10 weeks.
Essential criteria
Every project considered by CGE must meet these standards. Projects that qualify can move directly to term sheet and SPV structuring.
- Minimum project size of USD/EUR/GBP 100 million
- Investment-grade tenant, or a guarantor rated by S&P or Moody's (or guaranteed by an AA-rated insurer)
- Triple Net (NNN) or Build-to-Suit (BTS) lease of 20+ years, extendable to 35–40 years
- Annual inflation indexation of approximately 3.5%
- Fixed-price, turnkey EPC contract with a performance bond
- Tier-one operator committed under a long-term O&M agreement
- Full insurance coverage across the contract stack
- An IGR guarantor: a government, an investment-grade rated company (S&P or Moody's), a rights holder, or a bank
Step by step
From first call to opening day
- 1
Pre-qualification
Client + Sports Space Partners
We review the project against Castlepines' standard criteria before anything else moves forward.
- Project size of at least USD/EUR/GBP 100 million
- Investment-grade tenant or guarantor identified
- NNN or BTS lease structure of 20+ years proposed
- Tier-one EPC and O&M counterparties named or shortlisted
- 2
Client onboarding
Client
The client opens a Sports Space Partners portal account and works through the due diligence wizard. Items still in progress can be flagged as outstanding with an expected date, so review starts in parallel.
- Mutual NDA in place before materials are shared
- Executive summary, business plan and financial breakdowns
- EPC contract (signed, draft or contractor term sheet)
- Investment-grade guarantor or surety, or realistic candidates
- 3
IGR guarantor alignment
Client + Sports Space Partners
An Investment Grade Rated (IGR) guarantor is identified to act as surety on the project. It does not have to be a bank.
- A government or public entity
- A company with a strong investment-grade rating from S&P or Moody's
- A rights holder
- A bank with a current investment-grade rating
- The guarantor confirms interest in principle
- 4
MOU and interest in principle
All parties
With a qualifying project and IGR guarantor in place, the parties confirm interest in principle and sign a memorandum of understanding setting out the next steps.
- Package submitted to Castlepines
- Interest in principle confirmed
- MOU signed
- 5
Term sheet and SPV structuring
Castlepines + sponsor + bank
Castlepines moves directly to term sheet. A dedicated SPV is formed, and Castlepines and the sponsor commit the full equity required for the asset.
- Castlepines and sponsor typically each own 50% of the SPV, with flexibility on the split
- IGR guarantor named as surety
- Partner bank appointed as the exclusive banking home
- Indicative yield and tenor confirmed for the project
- 6
Self-guarantee package
SPV shareholders
Castlepines and its co-shareholders post a two-layer self-guarantee package, structured so that the bank is never the first-loss party.
- Layer 1: cash collateral of about 30% of invested principal, held at the bank
- Layer 2: the underlying asset, and where applicable SPV equity
- Any drawdown must be repaid before dividends are released
- 7
Due diligence and definitive documents
All parties + counsel
Full due diligence is completed and the definitive documents are signed. Due diligence typically takes 4 to 6 weeks.
- Tier-one binding letter issued
- Shareholders' agreement and account control agreement
- NNN or BTS lease
- Fixed-price, turnkey EPC contract with performance bond
- Long-term O&M agreement and full insurance program
- 8
Funding and banking setup
SPV + partner bank
The new SPV or JV is in place and 100% of the agreed funding is deposited, typically within 8 to 10 weeks. The partner bank runs all project banking for the life of the asset.
- Investment of USD/EUR/GBP 100M or more deposited with the partner bank
- Operating, payroll, supplier and treasury accounts opened
- Project officers and employees open personal accounts with the bank
- 9
Build, open and operate
Sponsor + operator
The facility is delivered under the EPC contract and run by the operator. The lease generates long-term, inflation-indexed income for the SPV for 20 to 40 years.
- Construction delivered under the turnkey EPC contract
- Operator runs the facility under the O&M agreement
- WOOOBA technology supports utilization and new revenue
Documentation package
How Castlepines reviews a package
Castlepines funds up to 100% of the project cost upfront as long-term (20 to 40 year) passive equity. Castlepines typically commits a cornerstone of 5 to 20% of the total investment, and institutional co-investors (public and private pension funds and insurance companies) cover the balance. The exact mix is set per transaction once co-investors commit.
Because of that, the review focuses on the certainty of the payment stream rather than upside. The EPC contract and the investment-grade guarantor or surety are usually the deciding factors.
Items still in progress can be flagged as outstanding with an expected date, so review can start in parallel rather than waiting on a complete package.
Company and NDA
- Signed mutual NDA (if already in place)
- Certificate of incorporation / formation documents
Executive summary
- Executive summary document
- Site plans, renderings or design documents
Business plan
- Business plan
- Market or feasibility study
Financial breakdowns
- CapEx budget / sources and uses
- OpEx budget
- Revenue projections
- Cash flow model
- IRR / return analysis
- Sensitivity scenarios
EPC contract
Deciding factor- EPC agreement, draft or contractor term sheet
- Performance bond or commitment
- O&M agreement or proposal
- Insurance certificates or broker summary
Investment-grade guarantor / surety
Deciding factor- Guarantee, surety or insurer commitment
- Lease, heads of terms or letter of intent
- Contracted revenue agreements
- Evidence of guarantor / tenant credit rating
Partner bank
- Bank letter of interest (if available)
Risk structure
The self-guarantee package
Each SPV's shareholders post a two-layer guarantee designed so that the partner bank is never the first-loss party.
Layer 1: Cash collateral account
An amount equal to about 30% of the invested principal is held for the full term of the project in an investment account controlled by the partner bank. It can only be drawn to cure a payment shortfall or avoid a default, and any drawdown must be repaid by the SPV before dividends are paid to shareholders.
Layer 2: Asset-backed guarantee
The underlying real estate or infrastructure asset itself, and where applicable the shareholders' equity in the SPV, stand as a secondary guarantee to the bank, on top of the cash collateral.
Contracts
Contract and income standards
- All counterparties (tenants, operators, EPC contractors, off-takers) are tier-one and investment-grade, or guaranteed by an AA-rated insurer
- Construction-phase assets use a fixed-price, turnkey EPC contract with a performance bond
- A strong operator is committed under a long-term O&M agreement
- Full insurance coverage is mandatory across the contract stack
- Income is secured through NNN or BTS leases, so rent and operating costs sit with the tenant
- Minimum lease term of 20 years, extendable to 35–40 years, with annual indexation of about 3.5%
Indicative terms
Target yields by tenor
| Tenor (years) | USD | EUR | GBP | JPY | AUD | NZD |
|---|---|---|---|---|---|---|
| 35 | 5.75% | 4.65% | 6.50% | 4.10% | 5.70% | 5.80% |
| 30 | 6.10% | 5.15% | 6.70% | 4.65% | 6.20% | 6.20% |
| 20 | 7.60% | 6.85% | 8.00% | 6.10% | 7.60% | 7.60% |
| 15 | 9.40% | 8.55% | 9.60% | 7.60% | 9.20% | 9.25% |
| 10 | 12.75% | 12.05% | 13.00% | 11.00% | 12.50% | 12.60% |
Illustrative, unlevered yield targets based on Castlepines' current underwriting book. Actual terms are set project by project and confirmed in definitive documentation.
Ready to get started?
Create a client account to begin the due diligence wizard. Save your progress, upload documents and submit when you're ready for review and MOU.
This page summarizes Castlepines Global Equity's published partnership program for information only. It is not an offer to sell or a solicitation of an offer to buy any security, and it is not legal, tax or investment advice. All terms are indicative and subject to due diligence, approvals and definitive documentation. Learn more at www.castlepinesequity.com.