Headquartered in Oslo in Norway, Kinland had 172 properties in its portfolio when acquired by PATRIZIA Infrastructure. Since then, Kinland has invested widely throughout the Nordics. The latest purchase of an additional 31 social infrastructure properties in Finland in June 2023 (24 of them preschools) increased the number of assets now under management to 347, making Kinland a leading provider of preschools in the Nordics.
Properties are typically leased to leading preschool operators or municipalities on long-term triple-net contracts, with the tenant or lessee obliged to pay all property expenses, including real estate taxes, building insurance and, most importantly, CAPEX and maintenance. These expenses are in addition to the cost of rent and utilities. Operators receive around 78–88% of their preschool fees from municipalities backed by AAA/AA+ rated countries, while parents pay the remaining fees.
From the investment perspective, the cash flow of the portfolio provides a fixed revenue, escalated annually by inflation. Operational and occupancy risks are with the operator, and the said triple-net nature of the contracts secures a high EBITDA margin.
With the most recent €70 million addition to the portfolio, Kinland has grown its assets under management by approximately 90% since the company was acquired by the PATRIZIA Infrastructure-led consortium in 2019 from the Pioneer Property Group.