PATRIZIA, together with Mitsui & Co., Ltd. (Mitsui), has made a strategic investment in Kaer via the APAC Sustainable Infrastructure Fund (A-SIF). The investment will support the expansion of Kaer’s Cooling as a Service (CaaS) business across Asia, targeting up to USD 350 million in capital deployment to accelerate the region’s transition to low-carbon cooling.
Kaer, a pioneer in the CaaS sector and the fastest growing CaaS provider in Asia, enables businesses to transition to low-carbon cooling to serve their operations while reducing capital expenditure.
ASIF’s investment will support Kaer’s expansion of its existing presence in Singapore, Malaysia, India and Indonesia, as well as seed growth in new regional markets including Thailand and Vietnam.
With 30% growth in 2024 and a further 50% growth projected from existing contracts coming online in 2025, this partnership will allow Kaer to scale its operations safely and securely while further developing technology and data analytics capabilities to enhance customer experience.
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By 2028, Kaer aims to deliver low-carbon cooling to up to 100 million square feet of commercial real estate, helping to eliminate approximately 120 million kilograms of carbon emissions from cities in Asia.
Saji Anantakrishnan, Head of Infrastructure for Australia and Asia at PATRIZIA, said: “This fourth investment for A-SIF marks a strategic expansion into Cooling as a Service infrastructure. Kaer has built a market-leading business in an emerging sector that delivers both sustainability benefits and cost savings to customers. This platform exemplifies the merits and value-creation potential of mid-market infrastructure investing at its best. It is also a great example of what RE-Infra means in practice – infrastructure investing that enhances the value of the built environment, with technology playing a critical role in linking the two.”
Kaer remains under the same management, ensuring continuity in its operations and customer relationships, with A-SIF initially holding a minority stake, committing additional growth capital to support further expansion and business development.
Justin Taylor, CEO of Kaer, added: “This partnership with PATRIZIA and Mitsui through A-SIF is a significant milestone for Kaer and the global Cooling as a Service movement. With this investment, we will accelerate the expansion of our CaaS model into new markets, scale our technology-driven solutions, and help our customers reduce their carbon footprint while lowering costs. As demand for sustainable cooling grows across Asia, we remain committed to pioneering the transition towards a more energy-efficient and decarbonised built environment.”
This latest investment reinforces PATRIZIA’s commitment to sustainable infrastructure in emerging markets, following A-SIF’s recent investments in renewable energy and urban mobility solutions.
With a focus on infrastructure that enhances the built environment, PATRIZIA continues to execute its RE-Infra strategy – investing in critical assets that support the urban and energy transition, and the integration of smart technologies in real estate.
About PATRIZIA
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 41 years. PATRIZIA manages over EUR 55bn in assets and employs around 900 professionals at 26 locations worldwide. PATRIZIA has been making an impact since 1984 by helping children in need, since 1992 in close collaboration with Bunter Kreis (“colourful circle”) in Germany for aftercare of children with severe diseases and since 1999 through its support for the PATRIZIA Foundation
About Mitsui & Co., Ltd.
Mitsui is a global trading and investment company with a presence in more than 60 countries and a diverse business portfolio covering a wide range of industries, including infrastructure, mobility, energy and materials, amongst others. The company identifies, develops, and grows its businesses in partnership with a global network of trusted partners including world leading companies, combining its geographic and cross-industry strengths to create long-term sustainable value for its stakeholders.
About Kaer
The pioneer of Cooling as a Service, Kaer has designed, built and operated cooling systems for commercial and industrial buildings in Asia for over 70 years. Aiming to make CaaS the model of choice for the real estate industry, Kaer enables businesses to simply buy cooling on a pay as you use basis to overcome significant capital investment and challenges associated with owning a cooling system.
