PATRIZIA, a prominent global real assets partner, has finalized an agreement to acquire an 85% stake in Atlantico, the third-largest independent smart streetlighting operator in Italy in terms of managed light points (LPs). Pending regulatory approval, this acquisition marks PATRIZIA’s third investment in the Italian smart streetlighting sector, concluding its EUR 750 million smart cities investment initiative across Europe and the US.
This move further solidifies PATRIZIA Infrastructure’s position in the Italian smart streetlighting landscape, with a combined commitment of EUR 260 million, including previous investments in Ottima and Selettra in 2022. The newly formed portfolio becomes the second-largest independent streetlighting operator in Italy, spanning 200 municipalities and with potential expansion to manage up to one million LPs within the next five years, positioning itself as a key national player.
Atlantico, established in 2012, boasts a substantial portfolio set to expand to over 550,000 LPs by 2026. The company focuses not only on public lighting but also on energy efficiency solutions for public buildings, project finance for energy service contracts, solar PV projects, and EV charging infrastructure. The acquisition enables PATRIZIA to leverage Atlantico’s geographic diversity, particularly its strong presence in northern Italy, and to accelerate growth through bolt-on acquisitions and additional smart city services deployment.
Matteo Andreoletti, Head of Infrastructure Equity, Europe and North America at PATRIZIA, emphasizes the strategic nature of the acquisition, stating, “Our investment in Atlantico complements our smart cities portfolio and strategically enhances our streetlighting platform. With increased scale and market share, we are poised to unlock significant value and investment opportunities, leveraging our access to debt and innovative smart city solutions.”
Smart streetlighting plays a crucial role in the European Union’s energy efficiency and carbon emission reduction objectives. By upgrading to LED technology, municipalities can achieve over 50% energy savings and mitigate environmental impact. Italy, with one of the highest numbers of lighting points in the EU, stands to benefit significantly from such upgrades.
PATRIZIA’s flagship Smart City Infrastructure Fund has now fully allocated its EUR 750 million capital, with investments spanning Europe and North America. In the US, the fund has partnered with SiFi Networks for FiberCity® projects, delivering high-speed fiber connectivity to small-medium sized communities. In Europe, the fund diversified its portfolio with acquisitions of Italian smart streetlighting companies Ottima and Selettra in 2022.
Graham Matthews, CEO of PATRIZIA Infrastructure and Chair of PATRIZIA Smart City Infrastructure Fund, highlights the opportunities presented by the digitalization megatrend, stating, “Our smart city investment program underscores our commitment to driving digitalization and creating value for investors through innovative solutions.”
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By Ravi Kumar