Patrizia Mutual Fund has officially entered industry infrastructures in Spain. The company, known for its real estate projects such as the large student residence program that saw 1,500 units purchased by 2022 and a major expansion in Barcelona, plans to jointly fund initiatives in Spain. The focus spans lighting, Waste Management, optical fiber, digitization, and trail infrastructure, among others. The fund totals €1,500 million, split into two vehicles of €750 million each to support projects globally, with a cap of €150 million allocated to any single project. In Italy, a benchmark market, Spain is allocated €300 million for similar investments.
This marks the first investment in this particular format. In Murcia, toll road developments are already under review with two potential operations valued at approximately €25 million and €50 million, covering optical fiber and smart waste collection systems.
The key challenge for these projects is their high capital requirement, and many municipalities lack the funds or the borrowing capacity to finance them. This is Patrizia’s core role, according to Patrizia Infrastructures Director Phoebe Smith and José Artiles, an investment manager in the same division.
To address this, Patrizia recommends pursuing investment partnerships for such ventures. Both sides are considering collaborations with technology firms to access public tenders and to finance private initiatives that are already in advanced discussions with municipalities. The aim in Spain is to replicate the Italian model: the company has already acquired two public lighting companies there and now collaborates with around 100 municipalities, especially smaller ones, notes Artiles.
smart city
The strategy envisions participating in tenders to manage general lighting with LED lighting and sensors that improve system efficiency. This approach becomes a gateway for cooperation with City Councils across multiple domains. The administrators list several potential benefits: effective waste management, security cameras on main streets to better monitor activities in busy zones, free public Wi-Fi, and electric vehicle charging stations. The ultimate objective is to accelerate the adoption of smart city concepts, a goal highlighted by the company’s recent participation at the Smart City Expo World Congress in Barcelona while promoting this new role.
In summary, Patrizia positions itself as an investor that can substantially fund and participate in smart infrastructure projects. The firm emphasizes that many municipalities and regions require funding to become more sustainable and to upgrade their digital infrastructure. It presents itself as a real estate investor willing to take a significant role in the infrastructure segment.