MEAG finances Parmaco’s dynamic building portfolio
MEAG is the cornerstone debt investor with a three-digit million-euro stake.
Photo credit: Parmaceo
MEAG is participating in the debt refinancing of Parmaco, a provider of dynamic buildings with modular structure for educational, healthcare, and other public services in the Nordics, together with a consortium of leading banks and institutional investors. MEAG is thereby the cornerstone debt investor with a three-digit million-euro stake funded by several Munich Re entities and a separately managed account in the debt financing totaling ca. €700m.
Modular buildings for public sector customers in Finland and Sweden
Parmaco designs, builds, owns and rents high-quality modular buildings. The buildings are rented to highly rated public sector customers in Finland and Sweden for both temporary and permanent use. Parmaco’s portfolio is mainly used for educational, healthcare and other public services based on a dynamic, circular ‘space-as-a-service’ model. Within the transaction parameter, Parmaco has currently over 300 lease contracts in place with public sector customers, providing home for around 38,000 children in school and day cares across Finland and Sweden.
Efficiency of dynamic buildings
Dynamic buildings represent an innovative and sustainable approach to construction and operation. They promote efficient use of space by being scalable and adaptable as required and can be flexibly repurposed and relocated. They further use standardized building materials and generate less waste both during construction and at the end of their service life. These characteristics are well-suited to the Nordic market with its high demand for sustainable, fit-for-purpose, immediate building solutions – driven by population volatility (urbanization, demographics) and renovation need of the aging educational and healthcare building stock.
While retaining high-quality aspects (incl. fire safety, sound proofness, air ventilation, triple glazed windows) of ‘traditional’ buildings made of concrete, Parmaco’s modular buildings have a low carbon footprint in manufacturing through wood and (incoming) CO2-free steel building materials, while ensuring a high level of energy-efficiency once in operation.
Benjamin Hemming, Head of Illiquid Assets Debt at MEAG: “MEAG builds on its long-lasting successful relationship with Partners Group across various alternative asset classes. As one of the leading infrastructure debt asset managers in Europe, we are proud to underpin our contribution to social infrastructure projects with our strong participation in this refinancing.”
Isil Tanriverdi Versmissen, Head of Infrastructure Debt Transactions: “We are delighted to support the refinancing of Parmaco, a leading provider of innovative modular buildings in the Nordics. I'm proud of our team's efforts in bringing this complex transaction to a close. This achievement is a testament to our team's dedication, expertise, and commitment to supporting sustainable and impactful projects.”