CapMan Infra invests in renewable district heating in southern Finland
CapMan Nordic Infrastructure I Fund has agreed to acquire 100% of the district heating business in the city of Loviisa, on the southern coast of Finland, from Porvoon Energia.
Porvoon Energia’s district heating business produces and distributes heat to residential, commercial and public properties in the city of Loviisa. The network currently serves approx. 300 connection points and the customer base has grown steadily. The heat production in Loviisa is fully based on renewable energy from biomass, and amounted to 53 GWh in 2019.Two primary energy plants, three back-up plants and 38 km of pipeline network ensure a secure supply of district heating in the area and provide opportunities for further expansion of the district heating network.
District heating is a highly attractive and established form of heating in the Nordics, and essential infrastructure in the urban areas due to the cold climate in the region. The demand for district heating has grown steadily during the past decades especially in densely populated areas, where connecting to district heating is an effortless and a cost-efficient heating method.
“Functional and reliable heating are cornerstones of comfortable living in Finland and district heating provides clear advantages to customers. By utilising renewable energy, district heating is also a sustainable choice and increases the value of real estate. We plan to expand the district heating network in the area to provide reliable heating with stable tariffs to the citizens and companies of Loviisa, which we find to be an attractive developing city for investment”, says Ville Poukka, Managing Partner of CapMan Infra.
“We are pleased to have found CapMan Infra as a committed new owner who will continue developing the district heating infrastructure in Loviisa. We have also agreed to provide transitional services to ensure a smooth transfer of the business into new ownership”, says Porvoon Energia’s CEO Patrick Wackström.
The transaction is the second investment in the energy sector for the fund. Earlier this year, CapMan Nordic Infrastructure I Fund invested in Nydalen Energi, a provider of district heating and cooling in Norway. CapMan Infra’s investment focus is core and core+ infrastructure assets in the energy, transportation and telecom sectors in the Nordics.
The transaction is expected to close in Q3/2020 and is subject to customary closing conditions.
For further information, please contact:
Ville Poukka, Managing Partner, CapMan Infra, tel. +358 50 572 9120
About CapMan www.capman.com
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 around 150 people in Helsinki, Stockholm, Copenhagen, London and Luxembourg. We are a public company listed on Nasdaq Helsinki since 2001 and a signatory of the UN Principles for Responsible Investment (PRI) since 2012.
