Industry super funds-owned global funds manager IFM Investors is to invest $50 million in Smart Urban Properties Australia (SUPA), a new company that provides packaged utilities and communications infrastructure.
SUPA claims to be Australia’s first business to offer converged utilities and communications for high density residential and commercial developments.
The company was formed late last year by a merger of b.energy, a supplier of renewable energy; Fiber Corp, optical fibre broadband; supatech, security intercoms video surveillance and home automation; Epsilon Security, home security; Smart Automation Systems, residential and commercial automation; and connecX, building management, concierge and facilities staff communication. The companies had previously partnered on numerous projects.
SUPA chief executive Geoff Horth said property investors and developers were changing the way they viewed the provision of utilities to new and existing properties and the company had been structured to accommodate this. IFM’s investment would enable it to accelerate its growth plan.
He said SUPA’s primary services were access to renewable energy and super-fast optical fibre communications.
On the back of these services, the business offered low-cost centralised hot water systms, electric vehicle charging, community electric vehicles, smart home applications, electronic security, and building management services.
SUPA introduces its services by providing developers with online links to demonstrations that they can use in pre-development promotion. When buildings are complete, apartment owners simply use mobile phones to access platforms where they can select services ranging from utilities to television channels.
IFM’s investment is being made as part of its growth companies private equity strategy but will leverage the investor’s wider networks, relationships and specialist skill sets to help build SUPA’s business.
IFM executive director Jeremy Larkin said the investment aligned with IFM’s private equity strategy of investing in companies that have proven, resilient, business models and actionable growth agendas with the potential to deliver returns to the firm’s super fund investors plus additional benefits for the beneficiaries of those investors, millions of working people.
He said SUPA had special appeal as its business model matched both the anticipated trend towards higher density living which would be driven by expected strong population growth, and regulatory pressure which would require increased utilisation of renewable energy.
“We are delighted to be partnering with SUPA on their mission to improve the lifestyles of people living, and working, in apartment complexes and other multi-dwelling properties across Australia,” Larkin said.
SUPA’s board and management team support the investment. The transaction is expected to close in August, subject to SUPA shareholder approval.
On completion of the transaction, it is planned that Larkin and Daniela Wegner will represent IFM on the SUPA board.
Wilsons Advisory acted as financial adviser to SUPA in relation to the transaction.
Image: The 500 residences at Lendlease-developed Darling Square in Sydney utilise some of SUPA’s technologies.