IFM injects $50m in sustainability-focused SUPA

Melbourne-headquartered institutional investment fund IFM has announced a $50 million investment in Smart Urban Properties Australia (SUPA), an Australian-first and sustainability-focused converged utilities and communications infrastructure service provider.

SUPA chief executive Geoff Horth said he was “delighted” with the new partnership, adding that the capital injection would support both the delivery of its “existing pipeline of projects” as well as enable “further investments to increase our market share”.

The transaction is expected to complete by August 2023, subject to SUPA shareholder approval, with the investment led by IFM’s private equity Growth Partners Fund.

SUPA was born in 2022 as a convergence of utilities, communications network and proptech providers b.energy, Fibercorp, Epsilon, Smart Automation Systems and ConnecX.

In April this year, SUPA successfully completed a pre-IPO capital raise of $9 million, with plans to list in either late 2023 or early 2024.

The company focuses on sustainable development of multioccupancy properties, emphasising renewable energy and mobility, super-fast fibre and communications infrastructure, and integrated in-building technologies.

In a statement, Horth said the investment would “change the game” for property investors, developers, and owners, “improving the lifestyles of the communities it serves by developing smarter, safer, more sustainable urban properties”.

Chaired by former Australian MP Greg Combet, IFM is an industry super-owned investment fund, with assets spanning infrastructure, debt, listed equities and private equity. IFM reports that it has AU$217 billion under management, as of March this year.

IFM executive director Jeremy Larkin said the deal with SUPA aligns with the fund’s strategy of investing in companies with a “proven, resilient business model and an actionable growth agenda, which have the potential to deliver returns to our investors and their beneficiaries”.

He added: “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 all across Australia.”

As part of the partnership deal, IFM’s Daniela Wegner and Jeremy Larkin will join the SUPA board.