AMP Capital has set up a new infrastructure business to invest in telecom site leases globally.
AMP Capital said it intends to invest up to $350m (€298m), on behalf of its Global Infrastructure Fund II, to fund the future growth of Telecom Infrastructure Partners (TIP), the newly created business.
The investment manager said TIP was created by its global infrastructure equity team, in partnership with Eric Overman, the founder and previous CEO of APWireless. Overman will serve as chief executive officer of TIP.
Headquartered in London TIP will acquire, own, and manage long-term lease contracts underlying mobile telecom sites, with an initial focus on Europe and Latin America.
Adam Ringer, partner, infrastructure equity at AMP Capital said: “Digital infrastructure has been one of the best-performing infrastructure sectors in recent years, and ground lease aggregation is a fantastic way to access the next area of value creation in the sector.
“The investment thesis is underlined by exponential growth in demand for wireless data and new technology development, driving the need for more mobile telecom locations.
This is a unique moment in the telecom and digital infrastructure ground lease investment business, Overman said.
“Just a decade ago, telecom site lease aggregation occurred principally in the US; today, there is a nascent international market, but penetration remains far below that in the United States, creating a great opportunity for TIP,” he added.
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