Picture: Patrizia

PATRIZIA has announced plans to invest up to EUR 140 million in Selettra S.r.l, Italy’s second-largest independent smart street lighting company, through its flagship smart cities strategy, the Smart city Infrastructure Fund- the single fund with Dutch pension giant APG.  

This major deal will accelerate PATRIZIA’s growth ambition and strategy to enable smarter, better-connected cities in key markets around the world, the company said in its press release. 

Selettra was founded in 1990 for the design, redevelopment, installation, finance and management of connected lighting points. Originally its focus has been on southern Italy and has recently expanded to include the north of the country.  

Currently, it is rolling out two additional smart city business lines connected to the development of Renewable Energy Communities and the roll out of 5G small cells, said the company. 

PATRIZIA has stated that the transaction will build an EUR 180 million portfolio of smart streetlighting companies following the recent acquisition of Ottima, SCIF’s debut investment in Europe. These transactions combined will grow SCIF’s footprint in this sector and build an experienced technical and business development team with strong municipality connections in the region. 

“This latest deal in Italy was a compelling investment opportunity – both in its own right as well as through its ability to create a major smart streetlighting portfolio for SCIF in Italy following the recent acquisition of Ottima. Not only is smart streetlighting important for addressing challenges around decarbonistaiton and digitalisation, but it is as a core infrastructure product that offers our investors attractive risk-adjusted returns and inflation protection. We are excited to continue our track-record of investments that enable smarter cities through real assets.” said Matteo Andreoletti, Head of Infrastructure Equity, Europe and North America at PATRIZIA. 

Italy is one of the highest consumers in public lighting in the EU due to its network of overpowered lamps containing 150W lightbulbs therefore, smart streetlighting is a significant contributor to the European Union’s policy objective on energy efficiency and reduction of carbon emissions.