Smart City Infrastructure Fund holds second closing at EUR750m

Related Topics
Smart cities

Whitehelm Capital (Whitehelm) and APG Asset Management NV (APG), acting on behalf of pension fund client ABP, have announced the closing of the second funding round of the Smart City Infrastructure Fund (SCIF), bringing total fund size to EUR750 million. 

SCIF fully committed the initial EUR250 million of funds from cornerstone investor APG to an exciting range of Smart City enabling infrastructure projects. As a result of this success, APG has confirmed its commitment of a further EUR500 million to SCIF to continue to invest in Smart City infrastructure opportunities on a global basis.

SCIF was established in November 2018 to invest in Smart City enabling infrastructure and was one of the first funds globally to target this emerging asset class. The Fund targets investments that enable the implementation of a wide range of Smart City infrastructure solutions, allowing cities to more efficiently allocate resources and improve the lived environment.

Since the first close SCIF has successfully committed to four Smart City investments, providing long-term institutional financing to projects that provide next generation connectivity on an open access basis and the infrastructure layer to deliver Smart City applications, such as connected street lighting, advanced building management, smart utility and sustainable urban mobility. The initial investments have focused on the US, where SCIF is working closely with its JV partner SiFi Networks to roll out Smart City enabling fiber networks in medium sized cities.  The Fund’s first investment in Fullerton, California is continuing its construction program and has connected its first customers. The second investment in Salem, Massachusetts is due to begin construction this month with customer connections scheduled for later this year.

The Fund has a very strong pipeline of attractive opportunities globally, with a particular focus on diversifying across a broad range of technologies and infrastructure sectors.  SCIF continues to develop key relationships with government and operating partners and is excited to continue to invest in this rapidly emerging sector.

Graham Matthews, Chief Executive at Whitehelm Capital, says: “We are delighted to be expanding our relationship with APG and entering the next phase of growth of the Smart City Infrastructure Fund. We believe that Smart City solutions will play a key role in improving the efficiency and sustainability of the world’s cities. SCIF provides a funding model for these essential projects. Ultimately Smart Cities will improve the daily lives of citizens across the world, and we are excited to be playing a key role in enabling these projects.”

Carlo Maddalena, Senior Portfolio Manager at APG, says: “The increase in our investment in the Smart City Infrastructure Fund is a testament to our commitment to invest in long-term sustainable and resilient infrastructure projects that generate attractive risk-adjusted returns for our pension fund clients. The urbanisation trend is steadily accelerating globally and is reshaping the urban city firsthand. Alongside our partners, we will continue to develop projects that entail the roll-out of next-generation information and communications technologies to address these challenges and provide tools for city officials to build, run and manage cities in a better and more sustainable way for the years to come.”

Author Profile