Patrizia completes €750m fund with streetlighting deal

Patrizia's flagship Smart City Infrastructure Fund has now fully committed its €750 mln capital to smart city projects across Europe and North America following an investment in a streetlighting company. 

The Germany-based real assets company has inked a deal to acquire an 85% stake in Atlantico, Italy’s third-largest independent smart streetlighting operator by number of light points managed.

This will expand its smart streetlighting portfolio by over 65% to 360,000 light points and follows previous acquisitions of Ottima and Selettra in 2022.

Atlantico has a substantial portfolio that has the near-term potential to expand to over 550,000 LPs by 2026 as the result of being awarded large-scale public lighting concessions in most regions across Italy.

Patrizia said smart streetlighting is a significant contributor to the European Union’s policy objectives on energy efficiency and reduction of carbon emissions. Italy is one of the highest consumers of public lighting in the EU due to its existing network of overpowered lamps containing 150W lightbulbs, while it has the second-highest number of lighting points. By upgrading their streetlights with the latest LED technology, towns can achieve energy savings of over 50% and minimise harmful substances from their communities, such as ultraviolet radiations and CO2 emissions.

Graham Matthews, CEO of Patrizia Infrastructure and chair of its Smart Citiy Infrastructure Fund, said: 'We are living in a world in transition where digital infrastructure and new technologies are disrupting the way we live, work and do business across the globe.'

'This digitalisation megatrend continues to create highly attractive opportunities for investors looking to capitalise on infrastructure assets delivering long-term resilient income alongside positive social impact within communities.'

Patrizia was advised by ValeCap (M&A), GOP (legal), and EY (financial, tax, technical and commercial).

Matteo Andreoletti, head of infrastructure equity, Europe and North America, added: 'We have a high conviction in smart streetlighting as it is central to the urban and energy transitions shaping our economies, while also offering our investors core infrastructure exposure that provides attractive risk-adjusted returns and inflation protection.'

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