Netherlands’ largest pension fund ABP has partnered with Dutch telecommunications firm KPN to create a new tower company (TowerCo) that will hold a portfolio of around 3,800 towers and rooftops.
TowerCo’s assets comprise passive mobile infrastructure assets of KPN and assets of ABP’s portfolio company OTC, as well as the assets of Novec, a portfolio company of TenneT.
As part of the deal, KPN is expected to pay around €120m to Novec and OTC’s current shareholders for its 51% stake in TowerCo. ABP, which is represented by its asset manager APG, will hold a 49% interest in TowerCo as a result of TenneT selling its stake in Novec.
The transaction also involves TowerCo agreeing for KPN to continue to be a tenant of TowerCo for an initial period of 20 years.
KPN said the new venture is part of its strategy to “optimise the value of its passive infrastructure assets and retain strategic flexibility”.
KPN added: “It demonstrates KPN’s intent to optimise shareholder value and continue to operate the best digital infrastructure in the Netherlands.”
The latest venture builds on KPN and ABP’s collaboration. In 2021, the Dutch civil service pension scheme invested in a fibre optic rollout venture with KPN. At the time, ABP said it was paying €440m in cash for a 50% stake in the €1.2bn joint venture, with the remaining investment being financed with debt.
To read the latest IPE Real Assets magazine click here.
