Smart City Infrastructure Fund

Overview

The Smart City Infrastructure Fund is an investment vehicle that provides long-term private institutional capital for the development of sustainable urban ecosystems. The Fund focuses on areas such as energy efficiency, networks, mobility, and data analytics to help cities address challenges like urbanization, climate change, and resource scarcity. By investing in these sectors, the Fund aims to promote the development of sustainable communities and technological advancement through digitalization. The Fund's investment strategy includes targeting operating assets or ready-to-build assets with a minimum investment size of €10 million and a minimum investment term of 10 years. Geographically, the Fund focuses on OECD countries worldwide and structures investments through public-private partnerships, concessions, and sale & lease-back arrangements. Eligible funding includes common equity in individual assets, preferred equity, and acquisition of receivables. Since its inception, the Fund has committed to several Smart City enabling infrastructure projects, including investments in Fullerton, California, and Salem, Massachusetts, focusing on the rollout of Smart City enabling fiber networks in medium-sized cities. The Fund's commitment to sustainability is evident through its adherence to responsible investment practices, including backing the UN Global Compact and the Taskforce on Climate-Related Financial Disclosures (TCFD). Additionally, through its managing partner PATRIZIA Infrastructure, the Fund is a signatory to the United Nations-backed Principles for Responsible Investing (UNPRI) and submits annual fund and asset evaluations to GRESB infrastructure. The Smart City Infrastructure Fund is managed by Whitehelm Capital and backed by APG, a leading Dutch pension investor. APG's initial commitment of €250 million in 2018 was followed by an additional €500 million in 2021, bringing the total fund size to €750 million. This substantial backing underscores the Fund's capacity to invest in large-scale Smart City infrastructure projects globally, aiming to improve quality of life and generate revenues and savings for cities, thereby enabling sustainable urban development.