Kinland AS (Kinland) acquired 18 social infrastructure properties (the Transactions) from various sellers at the end of Q4 2023.
The Transactions comprise 18 preschool properties, of which 14 are in Finland and four are in Norway. A large majority of the properties are new or recently built with high technical and environmental standards, primarily let to leading operators in their segments on long-term lease agreements.
The Transactions have a total gross property value of €35m and include three different target portfolios. The first transaction is the acquisition of eleven Finnish preschool properties from Titanium. The parties have entered into an unconditional SPA with an expected closing in Q1 2024. The second transaction is a sale-leaseback comprising four Norwegian preschool properties from an undisclosed seller. An unconditional SPA has been signed with execution in two tranches and the expected final closing in January 2024. The third and final transaction is the acquisition of three Finnish preschool properties from UB Finnish Properties (AIF), closed at the time of this announcement.
The Transactions will be financed by a combination of equity from existing shareholders and debt facilities from existing financiers, leading European banks and institutional investors.
“These 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 transactions that are at the core of our investment strategy, we continue to strengthen our position as a leading provider of preschool facilities in both of our key jurisdictions, Norway and Finland. We continue to see great opportunities for further growth and consolidation within the Nordic preschool sector, especially in Finland where we during 2023 have in-sourced an experienced organisation.” said Benjamin Thorsen, CEO of Kinland.
Deloitte acted as legal, financial and tax adviser, and WSP acted as technical adviser, to Kinland on the Transactions.
Image source - Pexels.
