CHICAGO, IL — Harrison Street Asset Management (“Harrison Street”), a global alternative investment management firm with more than $110 billion in assets under management across infrastructure, real estate and credit strategies, has agreed to acquire a majority equity position in Vicinity Energy, Inc. (“Vicinity”) from Antin Infrastructure Partners. The transaction values Vicinity at a total enterprise value of $2.92 billion.

District Energy Platform Serves 12 Major US Cities

Headquartered in Boston, Vicinity provides district heating and cooling services across 12 major US cities, including Boston and Philadelphia. The company supplies steam, hot water and chilled water to more than 700 customers across approximately 1,000 buildings, including commercial properties, hospitals and healthcare facilities, colleges and universities, residential buildings and other institutions.

Vicinity is vertically integrated, with in-house commercial, operating, engineering and asset management capabilities. Its infrastructure represents approximately 250 million square feet of space and includes more than 140 miles of underground piping.

Infrastructure Supports Diverse Institutional Customers

District energy systems are a longstanding component of the infrastructure supporting US cities, with some networks operating for more than 150 years. These systems provide centralized heating and cooling to dense urban areas and large institutional campuses through extensive distribution networks.

Harrison Street considers district energy a core component of its infrastructure strategy and has nearly a decade of experience investing in and operating district energy assets. The Vicinity acquisition significantly expands the firm’s presence in the sector.

“We’re thrilled to announce our plans to acquire Vicinity Energy and support the platform’s continued growth trajectory. District energy is an important area of focus for Harrison Street’s infrastructure strategy, and we see compelling opportunities to continue investing in these systems essential to meeting the critical utilities needs of the largest university, healthcare and government users,” said Carolyn Arida, Partner – Infrastructure at Harrison Street. “Vicinity’s scale, diversified customer base and critical role within the communities and institutions it serves make it a highly attractive addition to our portfolio, and we look forward to working with Vicinity’s leadership team to support the platform’s continued growth and to creating durable, long-term value for our investors.”

Vicinity Brings Decarbonization and Distribution Capabilities

Vicinity has also developed its proprietary eSteam™ offering as part of its approach to decarbonizing district energy systems. The company’s combination of centralized generation, extensive distribution infrastructure and in-house engineering and operating capabilities provides a platform for continued investment in district energy systems.

“This new partnership with Harrison Street Asset Management creates an opportunity to amplify our momentum through continued investment, innovation, and growth, while remaining steadfast in our commitment to operating safely, serving our customers reliably, and supporting the communities that depend on us,” added Kevin Hagerty, President and CEO of Vicinity. “We are grateful for the dedication of our employees, the trust of our customers and to Antin for its partnership throughout this chapter of our growth. Together, we have built a strong foundation for success.”

Acquisition Builds on Harrison Street’s District Energy Experience

The investment advances Harrison Street’s strategy of investing in essential infrastructure and real estate assets supported by durable demand and long-term growth trends. Since its inception, Harrison Street has completed five district energy system investments, including three with universities, one with a government entity and one with a municipal system.

Harrison Street plans to complete the acquisition through a joint venture partnership with Kenon Holdings. The transaction remains subject to customary regulatory approvals and is expected to close in the first half of 2027.

National Bank of Canada Capital Markets served as financial adviser to Harrison Street and Kenon, and Sidley Austin LLP served as legal counsel.