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DigitaBridge has entered into yet another mobile infrastructure deal, agreeing to purchase Telenet’s tower assets for $820 million
DigitalBridge, a US-based real estate investment trust and associate of DigitalBridge Group, has announced its agreement with Telenet to obtain all of the operator’s mobile telecommunications towers in Belgium.
The investment group has agreed to pay $820 million for 3,322 of Telenet’s sites, 2,158 of which are directly owned and further 1,164 owned by third-parties. In doing so, DigitalBridge will subsequently become Belgium’s first wholesale mobile tower operator. Telenet will lease use of the infrastructure back from DigitalBridge, with the contract including an initial period of 15 years with two potential 10-year renewals.
As part of the deal, DigitalBridge is committed to building at least 475 new sites.
Marc Ganzi, president and CEO of DigitalBridge, commented: “This transaction is the latest example of DigitalBridge’s commitment to working with leading telecom and technology companies globally to help them unlock embedded value in their networks via creative solutions built on long-standing relationships and a proven track record of successfully operating assets.”
"We see significant headroom for growth in the Belgian telecom market through the enhancement of mobile penetration and data usage, and we look forward to meeting and exceeding Telenet’s increased coverage needs.”
DigitalBridge currently manages data services through around 30,000 mobile tower assets around the world, with further assets including data centres, a fibre network, and edge facilities. In summer last year, the firm bought PCCW’s data centre business in Hong Kong for $750 million.
For Telenet, the contact will provide much needed funds for their participation in Belgium’s upcoming 5G spectrum auction, currently targeted for June.
Telenet launched limited 5G services back in December 2021 using a temporary spectrum licence allocated by the regulator.
The deal with DigitalBridge is expected to close in Q2 2022. The contract will not require further regulatory approval.
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