German asset manager PATRIZIA, together with Japanese trading and investment company Mitsui & Co., Ltd. (Mitsui), has made a strategic investment in Singapore-based cooling as a service (CaaS) firm Kaer via the Asia Pacific (APAC) Sustainable Infrastructure Fund (A-SIF).
The investment will support the expansion of Kaer’s CaaS business across Asia, targeting up to $350 million in capital deployment to accelerate the region’s transition to low carbon cooling, Kaer said in a statement on Tuesday.
The 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 percent growth in 2024 and a further 50 percent 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.
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.
“This partnership with PATRIZIA and Mitsui through A-SIF is a significant milestone for Kaer and the global CaaS 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,” said Justin Taylor, Chief Executive Officer of Kaer.
As demand for sustainable cooling grows across Asia, he said the firm remains committed to pioneering the transition towards a more energy-efficient and decarbonized built environment.
According to the statement, 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.
“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,” said Saji Anantakrishnan, Head of Infrastructure for Australia and Asia at PATRIZIA.
According to him, this platform exemplifies the merits and value- creation potential of midmarket 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,” he added.
According to the statement, 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.
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.
With over S$200 million ($152 million) of cooling assets under management, the firm is serving over 20 million square feet of real estate space across Asia.
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