The Transactions comprises 24 preschool properties and seven care service properties. A large majority of the properties are new or recently built with high technical and environmental standards, and are primarily let to leading operators in their segments on long-term leases.
The Transactions have a total gross property value of EUR 70.4 million, split into three portfolios that have been executed on a parallel timeline. The first transaction is the acquisition of twelve properties from Hoivatilat that has been closed at the time of this announcement. The second transaction is the acquisition of 15 properties from OP Public Services Real Estate Fund (also closed). The third transaction is the acquisition of four properties from Hoivarakentajat, a constructor of energy efficient and low-carbon log buildings.
Kinland is a leading owner of key social infrastructure assets in the Nordic region and continental Europe. With the closing of the Transactions, Kinland will have undertaken a total of 20 bolt-on acquisitions after it was acquired by investors managed by PATRIZIA in October 2019. The Transactions on a combined scale represent Kinland’s third largest completed bolt-on acquisition, measured in gross property value.
Since its original acquisition in 2019, Kinland’s management team has further strengthened the group as the leading provider of government-backed social infrastructure within its geographical segments. Following the Transaction, Kinland will own and manage a portfolio of 347 properties, which represents more than 100% growth in less than four years in both number of units and gross property value. The growth has been particularly strong in Finland, where Kinland has more than tripled its footprint from 47 to 173 social infrastructure units since 2020.
The Transactions will be financed by a combination of equity from existing investors and an institutional senior debt facility from Edmond de Rothschild’s BRIDGE debt platform, a leading European infrastructure financier.
“These large bolt-on acquisitions further substantiate Kinland’s ambitions for enhancing our essential societal role as a leading provider of social infrastructure across the Nordics and continental Europe. With these significant transactions, we continue to strengthen our position as a leading provider of both preschool and care facilities in Finland. Kinland has been able to demonstrate great momentum in building up a skilled and experienced local organisation in Helsinki, and we look forward to continuing our growth path in Finland,” said Benjamin Thorsen, CEO of Kinland.
Deloitte acted as legal, financial and tax adviser, and WSP acted as technical adviser, to Kinland in the acquisition. Reagle acted as adviser to the sellers in the Transactions.