- PATRIZIA portfolio company Kinland is to acquire a high-quality portfolio of 28 social infrastructure properties in Finland, comprising 18 preschool properties and 10 care sector properties
- Upon closing of the acquisition, Kinland will own and manage a portfolio of more than 310 properties, strengthening its position as a leader in social infrastructure in the Nordics
- With this new portfolio, Kinland will have grown its assets under management (AUM) by approximately 90% since the company was acquired by a PATRIZIA Infrastructure-led consortium in 2019
- The transaction represents the second-largest investment for Kinland under its ownership by PATRIZIA Infrastructure
Augsburg / Oslo, 15 December 2022. PATRIZIA portfolio company Kinland AS (“Kinland”) has agreed to acquire a portfolio of 28 social infrastructure properties in Finland from eQ Community Properties for EUR 76 million.
The high-quality portfolio is primarily located in or around Finland’s largest cities (Helsinki, Oulu and Kuupio), with its properties largely let on long-term leases (~10 years WAULT) to leading operators within preschools and a number of care segments.
The transaction will close in two phases: the first, including 12 of the properties, is expected to close by 30 December 2022, while the acquisition of the remaining 16 properties is expected to complete within Q1 2023.
The investment follows a period of strong growth since the inception of Kinland, which under PATRIZIA’s ownership has grown from 172 properties in October 2019 to more than 310 at the completion of this transaction, making it one of the leaders in social infrastructure in the Nordics. This represents an increase in AUM of approx. 90%, with particularly strong growth in Finland where it has tripled in size from 47 to 142 social infrastructure units over the last two years.
Graham Matthews, CEO of PATRIZIA Infrastructure and Chairman of the Board of Kinland, said: “The acquisition of this significantly sized portfolio continues Kinland’s growth trajectory as a pre-eminent Nordic social infrastructure platform and strengthens our footprint in Finland in particular. This transaction is fully aligned with both Kinland’s mission to ‘invest where people live’, as well as PATRIZIA’s broader long-term commitment to being an enabler of sustainable cities which meet the needs of the local population. Megatrends such as demographic and societal changes are only accelerating the need for high-quality social infrastructure worldwide and governments alone cannot meet demand.”
Benjamin Thorsen, CEO of Kinland, commented: “This large bolt-on acquisition confirms Kinland’s ambitions for enhancing our essential societal role as a provider of social infrastructure across the Nordics and continental Europe, as well as PATRIZIA’s commitment to support Kinland’s long-term growth ambitions. With this significant transaction, we continue to strengthen our position as a leading provider of both daycare and care facilities in Finland, and, by also building up a local organisation in Helsinki, we will accelerate this growth even further.”
PATRIZIA already has a proven track record of providing key infrastructure to local communities in the Nordics. For example, on behalf of its of institutional clients, PATRIZIA has invested in SAREN Energy, one of the largest district heating operators in Norway which delivers up to 525 GWh of energy per year. The SAREN Energy platform, which is an investment held by PATRIZIA European Infrastructure Fund II (EIF II), comprises three strategically located modern energy from waste (EfW) facilities and a district heating network.
Kinland was recently awarded GRESB ‘Most Improved for 2022’ and achieved a score of 93 for its sustainability commitments.
Kinland was advised by Deloitte (legal, financial and tax) and WSP (technical adviser).
PATRIZIA: A leading partner for global real assets
With operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 38 years. PATRIZIA manages more than EUR 57 billion in assets and employs over 1,000 professionals at 28 locations worldwide. Through its PATRIZIA Foundation, PATRIZIA is committed to social responsibility. The Foundation has helped around 250,000 children in need worldwide gain access to education and thus, has given them the chance of a better life over the last 23 years. You can find further information at www.patrizia.ag
Phone: +44 7881 276427