DWS is investing in digital infrastructure in Germany through the acquisition of a majority stake in Deutsche GigaNetz, a telecommunications provider in Germany.
The asset manager has agreed to buy a “significant stake” in Deutsche GigaNetz to become a shareholder alongside InfraRed Capital Partners and the Deutsche GigaNetz founding management team.
Financial details were undisclosed.
Headquartered in Hamburg, Deutsche GigaNetz builds and operates fibre networks in Germany, providing sustainable broadband access in underserved areas.
Thomas Kalthöfer, senior principal for infrastructure investments at DWS, said: “Deutsche GigaNetz is helping to provide fast, reliable and cost-effective fibre and high-speed internet connectivity.
“Fibre-to-the-home is key for a modern digital society, enabling flexible working from home, online education and multitudes of digital services.”
InfraRed, through its InfraRed Infrastructure Fund V fund, acquired a majority stake in Deutsche GigaNetz in July 2020.
InfraRed said it remains committed to Deutsche GigaNetz’s long-term plans and has allocated further investment to Deutsche GigaNetz.
Thomas Buss, director at InfraRed Capital Partners said: “This investment reflects InfraRed’s ongoing commitment to investing in developing sustainable infrastructure for tomorrow’s smart cities and connecting people to employment, education and each other.
“As a national operator, Deutsche GigaNetz has a key role to play in ensuring communities in Germany remain competitive in times of digitisation. Good high-speed internet connectivity is a key factor when companies select certain locations.”
Jan Georg Budden, CEO of Deutsche GigaNetz, said: “With DWS and InfraRed we are honoured to have two very large and experienced investors as partners for our long-term growth.”
Budden said the investment commitments will further increase the company’s capabilities to grow beyond its initial business plans, which was based on a €3bn investment programme with the ambition to connect more than one million households with pure fibre-to-the-home.
Jan Geldmacher, chairman of the board at Deutsche GigaNetz, said: “Deutsche GigaNetz has continuously delivered and outperformed its targets.
”Based on this success, management has laid a solid base for the future and a nationwide rollout as a quality leader with a strong brand.”
To read the latest edition of the latest IPE Real Assets magazine click here.
