PATRIZIA & Mitsui invest USD $350m to expand Kaer CaaS

PATRIZIA and Mitsui have announced a strategic investment in Kaer, targeting the expansion of Cooling as a Service (CaaS) across Asia, with up to USD $350 million in capital deployment via the APAC Sustainable Infrastructure Fund (A-SIF).

The investment is aimed at accelerating the transition to low-carbon cooling in the region, supporting Kaer's existing presence in markets such as Singapore, Malaysia, India and Indonesia, and facilitating entry into new territories including Thailand and Vietnam.

Kaer operates in the CaaS sector, allowing businesses to adopt low-carbon cooling solutions without significant capital expenditure. According to figures provided by the companies, Kaer grew by 30% in 2024 and anticipates a further 50% increase in 2025 based on current contracts. The investment from A-SIF will help Kaer scale its technology and data analytics capabilities to enhance customer experience and operational safety.

As part of its longer-term objectives, Kaer aims to provide low-carbon cooling to up to 100 million square feet of commercial real estate in Asia by 2028, targeting a reduction of approximately 120 million metric tons of carbon emissions from urban areas in the region.

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."

The structure of the partnership ensures continuity, with Kaer remaining under its existing management team and A-SIF initially taking a minority stake. The fund has committed further growth capital to enable expansion and new business development opportunities for Kaer.

Justin Taylor, Chief Executive Officer of Kaer, said: "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."

The investment in Kaer is the fourth to be made by A-SIF, following its commitments to renewable energy and urban mobility projects across the region. The transaction aligns with PATRIZIA's RE-Infra strategy, which focuses on infrastructure investments that support both urban and energy transitions, and integrate technology within the built environment.

Kaer has been active in the sector for over 70 years, specialising in the design, construction and operation of cooling systems for commercial and industrial premises. It currently manages over millions in cooling assets and provides services to more than 20 million square feet of real estate across Asia.

PATRIZIA manages billions in assets globally, with 900 professionals in 26 locations. Mitsui is active in over 60 countries, with business interests spanning infrastructure, mobility, and energy, and has set low-carbon transition and sustainable value creation as key priorities in its medium-term plan.