Oslo/London, 29 June 2022
Kinland AS (“Kinland”) and PATRIZIA Infrastructure (“PATRIZIA”) are pleased to announce that Kinland has signed and closed one property in Sweden used for assisted living (Sw. ‘LSS’) purposes (“the LSS Property”), from Frösunda, a leading Swedish provider of care services. The LSS Property will be let to Frösunda on a 15-year remaining lease contract. After this transaction, Kinland owns six LSS properties in Sweden. The LSS Property marks Kinland’s first acquisition in Sweden since 2020, and Kinland will look to further expand its footprint within social infrastructure in this area.
At the same time, Kinland has signed letters of intent to acquire up to ten additional social infrastructure properties across Finland, Norway and Sweden (“the Forward Properties”). The Forward Properties consist of up to eight preschool facilities and two facilities within the care sector. Six of the Forward Properties are scheduled for closing towards the end of Q3 2022, while the remaining four are expected to close in 2023 and 2024, respectively. Closing of the Forward Properties are contingent upon completed and satisfactory due diligence, as well as other key elements customary in a transaction process.
The LSS Property and the Forward Properties, including up to eleven properties in total, amount to a combined gross property value of up to approx. NOK 275 million.
Kinland is a leading owner of key social infrastructure assets in the Nordic region and continental Europe. The acquisition of the LSS property is the thirteenth bolt-on acquisition undertaken by Kinland after it was acquired by a consortium of PATRIZIA investors in October 2019.
Since its original acquisition, PATRIZIA has worked closely with Kinland’s management team to further strengthen Kinland as the leading provider of government-backed social infrastructure within its geographical segments. Following these transactions (if successfully closed), Kinland will own and manage a portfolio of up to 280+ properties, which represents approximately 65% growth since the acquisition of Kinland.
“These further bolt-on acquisitions confirm 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. While we continue to grow significantly in Finland, we are also excited about doing our first transaction in Sweden for some time, and will continue to look for opportunities in this area to further strengthen our position as a leading pan-Nordic owner of social infrastructure”, said Benjamin Thorsen, CEO of Kinland.
“The acquisition of this facility continues Kinland’s development as a pre-eminent Nordic social infrastructure platform. At PATRIZIA we are long-term investors committed to build upon Kinland’s mission to ‘Invest Where People Live’. We are very pleased to be supporting local communities by providing a high-quality environment for essential services that are used by thousands of people on a daily basis” said Graham Matthews, CEO Infrastructure at PATRIZIA and Chairman of the Board of Kinland.
Deloitte acted as an advisor for legal, financial and tax, and WSP acted as technical adviser, to Kinland in the acquisitions.
Kinland is a social infrastructure company providing high-quality properties for government-backed care services. The company owns 280+ properties, providing a safe and quality environment needed for the care of more than 23,000 people across the Nordic region and continental Europe.
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 55 billion in assets and employs over 1000 professionals at 27 locations worldwide.
PATRIZIA Infrastructure is the infrastructure division of PATRIZIA. With an outstanding track record spanning over 24 years, PATRIZIA Infrastructure has invested over EUR 8 billion in more than 110 infrastructure investments and has more than EUR 5 billion in assets currently under management. PATRIZIA Infrastructure has achieved strong returns across multiple market cycles, with an exceptional record of capital preservation.
The development of Kinland extends PATRIZIA Infrastructure’s long history of successfully providing key infrastructure to local communities. In Norway, this includes not only the investment in Kinland, but also Kvitebjørn Varme, the operator of Tromsø’s district heating network, and SAREN Energy, a sustainable renewable energy platform with presence in Sarpsborg and Fredrikstad. Other recent PATRIZIA investments include UK-based smart city developer Connexin and Vopak Solar Park Eemshaven, a 25MW solar farm in The Netherlands, as well as Ecotermica e Servizi (ETS), a platform of district heating plants in Italy.
PATRIZIA Infrastructure focuses on working with local communities to provide sustainable infrastructure that meets the highest Environment, Social and Governance standards. PATRIZIA Infrastructure is proud to be a signatory to the United Nations-backed Principles for Responsible Investing (UNPRI), The Task Force on Climate related Financial Disclosures (TCFD), UN Global Compact, Net Zero Asset Managers Initiative, and a member of GRESB Infrastructure.
For more information:
Graham Matthews, CEO Infrastructure
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Benjamin Thorsen, CEO
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Teodor Coucheron-Gautier Teigen, CFO
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Andreas Wassdal, Portfolio Director
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