Patrizia acquires the second largest Italian smart street lighting company, Selettra, for 140 million euros | New

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Patrizia Infrastructure has invested €140m (£122m) in Selettra Illuminazione Pubblica, through its Smart City Infrastructure Fund (SCIF) – the single-partner fund of Dutch pensions giant APG.

Selettra, founded in 1990, is the second largest independent smart street lighting company in Italy by number of light points managed.

The transaction follows SCIF’s first investment in smart street lighting in Europe, when it bought Ottima in early October, and creates a €180 million portfolio of smart street lighting businesses for the fund. 750 million euros.

Patrizia said the transactions strengthen SCIF’s footprint in the sector and establish an experienced technical and business development team with strong municipal relationships in a new region.

As part of the investment, SCIF has made additional growth investments to further develop Selettra.

Selettra designs, refurbishes, installs, finances and manages connected lighting points. Historically, it has focused on southern Italy but has recently expanded to the north of the country. It is currently rolling out two additional smart city business lines related to the development of renewable energy communities and the deployment of 5G small cells.

Matteo Andreoletti, Head of Infrastructure Equities for Europe and North America at Patrizia, said: “This latest deal in Italy was a compelling investment opportunity – both in its own right and through its ability to creating a major smart public lighting portfolio for SCIF in Italy following the recent acquisition of Ottima.

“Not only is smart street lighting important in addressing the challenges of decarbonization and digitalization, but it is also a core infrastructure product that offers our investors attractive risk-adjusted returns and protection against inflation. We are excited to continue our track record of making investments that enable smarter cities through real assets. »

Andreoletti added that smart street lighting contributes significantly to the European Union’s political goals of energy efficiency and reducing carbon emissions.

He said: “Italy is one of the largest consumers of public lighting in the EU due to its existing network of super-powered lamps containing 150W bulbs, despite having the second highest number lighting points.

“By retrofitting its streetlights with the latest LED technology, cities can achieve energy savings of more than 50% and minimize the release of harmful substances from their communities, such as ultraviolet radiation and CO2 emissions.

Andreoletti explained that SCIP focuses on new opportunities in Italy’s 7,800 cities with around 50,000 inhabitants.

He said: “There is what I call an infrastructural divide of big cities versus small towns in Italy. One of the main characteristics of this fund is therefore to have a positive impact on the country in which we invest.

“The second part of what is critical for this fund is that returns tend to be inflation correlated. So through this product we are delivering an attractive inflation linked return to the underlying investors.

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