Harrison Street Asset Management has agreed to acquire a majority equity stake in Vicinity Energy from Antin Infrastructure Partners in a transaction valuing Vicinity at $2.92 billion.
The acquisition will be completed through a joint venture with Kenon Holdings and is expected to close in the first half of 2027, subject to customary regulatory approvals and closing conditions.
Boston-based Vicinity is the largest provider of district energy solutions in the United States, supplying heating and cooling infrastructure across 12 major cities, including Boston and Philadelphia.
The company serves more than 700 customers across approximately 1,000 buildings, including commercial properties, hospitals, healthcare facilities, colleges, universities, residential buildings, and other institutions.
Vicinity’s platform supplies steam, hot water, and chilled water through a network of more than 140 miles of underground piping covering approximately 250 million square feet of space.
The company is vertically integrated, with in-house commercial, operations, engineering, and asset management capabilities.
Vicinity has also developed eSteam, a proprietary offering focused on decarbonizing district energy systems.
District energy systems provide centralized heating and cooling to multiple buildings through interconnected infrastructure.
Some U.S. district energy networks have operated for more than 150 years, making them a longstanding part of the utility infrastructure serving dense urban areas and large institutional campuses.
Harrison Street has nearly a decade of experience investing in and operating district energy systems and views the Vicinity transaction as a major expansion of that strategy.
Since inception, the firm has completed five district energy investments, including three university systems, one government system, and one municipal system.
The firm sees district energy as part of a broader infrastructure strategy centered on essential assets supported by long-term demand.
Vicinity adds a large-scale operating platform with exposure to customers in sectors where heating, cooling, and energy reliability are mission-critical.
For Harrison Street, the acquisition also provides an opportunity to invest behind Vicinity’s ongoing modernization and decarbonization initiatives.
The company’s eSteam platform is intended to help transition district energy networks toward lower-carbon technologies while maintaining reliable service to existing customers.
Vicinity President and CEO Kevin Hagerty said the new ownership structure is expected to support continued investment, innovation, and growth while preserving the company’s focus on safety, reliability, and customer service.
The transaction also represents an exit of a majority position by Antin Infrastructure Partners, which has supported Vicinity during its recent growth period.
Harrison Street manages $110 billion in assets under management across infrastructure, real estate, and credit strategies.
The firm operates from headquarters in Chicago, Toronto, and London and has more than 600 employees across North America, Europe, Asia, and the Middle East.
Its investor base includes more than 1,100 institutional investors and over 300 registered investment advisers.
The Vicinity acquisition gives Harrison Street a significantly larger position in district energy while extending its investment strategy into a platform serving healthcare systems, universities, commercial buildings, residential properties, and other large institutions.
Support: National Bank of Canada Capital Markets served as financial adviser to Harrison Street and Kenon Holdings, while Sidley Austin served as legal counsel.
KEY QUOTE:
“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. 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.”
Carolyn Arida, Partner – Infrastructure At Harrison Street
“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. 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.”
Kevin Hagerty, President And CEO Of Vicinity Energy
