Harrison Street Asset Management agreed on 30 September to acquire a majority stake in Vicinity Energy from Antin Infrastructure Partners, in a transaction valuing Vicinity at $2.92bn. Kenon Holdings is co-investing through a joint buyer vehicle.
Why Harrison Street Asset Management (with Kenon Holdings) is buying Vicinity Energy (majority stake)
Vicinity supplies heating and cooling to roughly 1,000 buildings through more than 140 miles of underground pipe in cities including Boston and Philadelphia, and is electrifying its steam systems. Harrison Street, which manages more than $110bn across infrastructure, real estate and credit, gains a regulated-style urban energy platform with long-term customer contracts.
Deal terms and financing
No separate stake price was disclosed; the $2.92bn figure is the enterprise value of the whole company. Kenon is taking a 25% interest for about $450m in cash, and lenders have committed up to $1.4bn to fund part of the purchase and future capital spending. Antin is reported to keep a minority holding.
Regulatory approvals and timing
The deal needs regulatory approvals and is expected to complete in the first half or second quarter of 2027.
Market context
Antin bought Vicinity, formerly Veolia's US district-energy arm, for $1.25bn in 2019, so the new valuation is roughly 2.3 times its entry price. The sale adds to a wave of infrastructure-fund exits from energy-transition assets.
