- PATRIZIA Infrastructure has signed a deal to acquire an 85% stake in Atlantico, Italy’s third-largest independent smart streetlighting operator by number of light points
- Following the acquisitions of Ottima and Selettra in 2022, the acquisition of Atlantico sees PATRIZIA’s smart streetlighting portfolio grow by over 65% to 360,000 light points under management and to a total of EUR 260 million in committed capital
- The platform has the potential to manage up to one million light points across more than 400 municipalities in Italy by 2028
- The latest acquisition means PATRIZIA’s flagship smart cities strategy has fully committed its EUR 750 million equity to smart city projects across the US and Europe
Milan, London 7 February 2024. PATRIZIA, a leading partner for global real assets, has signed a deal to acquire an 85% stake in Atlantico, Italy’s third-largest independent smart streetlighting operator by number of light points (LPs) managed. Pending regulatory approval, the transaction is the third Italian smart streetlighting acquisition by PATRIZIA’s Smart City Infrastructure Fund, its single LP strategy with Dutch pension giant APG, and completes its EUR 750 million smart cities investment programme across the US and Europe.
The acquisition further consolidates PATRIZIA Infrastructure’s market share in the Italian smart streetlighting sector, with a combined commitment of EUR 260 million that also includes investments in Ottima and Selettra in 2022. The portfolio today is the second-largest independent streetlighting operator in Italy by number of light points managed across 200 municipalities, with the potential to manage up to one million LPs within the next five years and become a top national player.
The larger platform delivers greater geographic diversity of LPs, with Atlantico providing strong exposure in the north of Italy. The platform’s growth will be further accelerated by bolt-on acquisitions and the deployment of additional smart city services in municipalities, such as smart building management, fleet electrification, 5G, smart meters and smart traffic services.
Established in 2012, 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. In addition to public lighting, Atlantico has businesses specialising in the energy efficiency of public buildings, project finance for energy service company contracts and solar PV projects. It manages a portfolio of more than 500 public buildings that have transitioned into smart buildings, as well as EV charging stations for 100+ waste collection boats. Finally, it is currently developing a 1MW PV plant and reviewing 23.5 MW of additional projects for industrial clients’ facilities.
Matteo Andreoletti, Head of Infrastructure Equity, Europe and North America at PATRIZIA, comments: “Our acquisition of Atlantico is highly complementary to our smart cities portfolio and is a strategic investment for accelerating the growth of our streetlighting platform. With much greater scale and market share, we can leverage our access to debt and innovative smart city solutions to really drive the future value and investment opportunities within the platform. As a sector, we have 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.”
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.
The investment in Atlantico means PATRIZIA’s flagship Smart City Infrastructure Fund has now fully committed its EUR 750 million capital to smart city projects across Europe and North America. In the US, the fund has invested in five FiberCity® projects in partnership with SiFi Networks that will deliver high speed fibre connectivity to small-medium sized communities across America. In 2022, the fund diversified its portfolio with its first investments in Europe following the acquisitions of Italian smart streetlighting companies Ottima and Selettra.
Graham Matthews, CEO of PATRIZIA Infrastructure and Chair of PATRIZIA Smart City Infrastructure Fund, comments: “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. The success of our smart city investment programme underlines our commitment to driving the digitalisation of our economies and unlocking value for our investors through innovative smart city solutions.”
PATRIZIA was advised by ValeCap (M&A), GOP (legal), and EY (financial, tax, technical and commercial).
PATRIZIA: A leading partner for global real assets
With operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 39 years. PATRIZIA manages approx. EUR 58 billion in assets and employs around 1,000 professionals at 28 locations worldwide. PATRIZIA has been making an impact since 1984 by helping children in need, since 1992 in close collaboration with Bunter Kreis (“colourful circle”) in Germany for aftercare of children with severe diseases and since 1999 through its support for the PATRIZIA Foundation. The PATRIZIA Foundation has given more than 600,000 children and young people worldwide access to education, healthcare, and a safe home to get the chance to live a better self-determined life over the last 24 years. You can find further information at www.patrizia.ag and www.patrizia.foundation
Phone: +44 881 276427