CapMan Infra press release
5 February 2020 at 09.15 a.m. CET
CapMan Infra invests in Nydalen Energi, the provider of environmentally friendly district heating and cooling in the fast growing Nydalen area in Oslo, Norway
CapMan Infra has entered into an agreement to acquire 100 per cent of the shares in Nydalen Energi AS (“Nydalen Energi”) from Avantor AS (“Avantor”). The company is the concession holder for district heating in the growing Nydalen area and has a highly attractive green production footprint for heating and cooling. The acquisition marks the CapMan Nordic Infrastructure I fund’s first core energy investment.
District energy is a fast-growing industry in Norway, backed by the ambitious climate targets set by the Norwegian government. Nydalen Energi and Avantor have been frontrunners in developing sustainable heating and cooling solutions within the capital city of Oslo. The concession area of the company is located in Nydalen, where during the last 25 years, Avantor has developed more than 600,000 m2 of property, transforming it into an attractive place to live, work and study in. Today Nydalen is a growing district with ~25,000 workplaces, ~10,000 students and ~3,500 residents. Nydalen Energi is the sole provider of district heating and cooling in the area, and has a green production footprint with ~90% of heating and 100% of cooling volumes produced with renewable energy sources, such as thermal energy, biofuels and hydropower.
“Norway has strong and attractive regulation in place to promote the use of district heating. We share this vision and believe that environmentally friendly district heating and cooling can play an important role in reducing the CO2 footprint of properties and thereby promoting greener societies. We find that the growing demand for district energy in Norway is underpinned by strong support from both landlords, tenants, as well as authorities, and find Nydalen Energi to be an attractive platform for entering the Norwegian market. We believe the company’s existing and future customers will benefit from CapMan Infra’s commitment to further develop the cost efficient and reliable heating and cooling infrastructure in the area,” says Ville Poukka, Managing Partner at CapMan Infra.
“In parallel with our real estate development in Nydalen, Avantor has for nearly 20 years developed Nydalen Energi to be a supplier of sustainable district heating and cooling in the area. We are proud of what we have achieved with Nydalen Energi and look forward to remain as a customer of the company and continue our focus on property development in the area,” says Øystein Thorup, CEO of Avantor AS.
CapMan Infra’s investment focus is core and core+ infrastructure assets in the energy, transportation and telecom sectors in the Nordics.
SEB Corporate Finance acted as the financial advisor and Simonsen Vogt Wiig as the legal advisor to CapMan Infra in the transaction. EY Corporate Finance acted as the financial advisor and Thommessen as the legal advisor to Avantor in the transaction.
The transaction is expected to close by end of February 2020 and is subject to customary regulatory approvals.
For further information, please contact:
Pekko Haaksluoto, Senior Investment Manager, CapMan Infra, tel: +358 40 584 6031
Øystein Thorup, CEO, Avantor AS, tel: +47 958 43 834
CapMan is a leading Nordic private asset expert with an active approach to value creation. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate assets and created substantial value in these businesses and assets over the past 30 years. With over €3 billion in assets under management, our objective is to provide attractive returns and innovative solutions to investors. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover Private Equity, Real Estate and Infra. We also have a growing service business that includes procurement services, fundraising advisory, and analysis, reporting and wealth management services. Altogether, CapMan employs 140 people in Helsinki, Stockholm, Copenhagen, London and Luxembourg. www.capman.com
Avantor is a leading property developer who currently owns approximately 250,000m2 commercial property, mostly located in the Nydalen region in Oslo, but also in Kristiansand and Tønsberg. Since the early 1990s, Avantor has had an integral role in transforming Nydalen from being an industrial cluster to a highly attractive area for businesses, households and students, and has over the period developed more than 600,000m2 in the district. Avantor’s focus on sustainability has been an important part of the development of Nydalen, and with this in mind, Nydalen Energi was established in 2002 in order to provide the growing district with green heating and cooling. Avantor’s main office is located in Nydalen, where approximately 40 people are employed. www.avantor.no
Photo credits: Frank Holtschlag