IFM Investors is investing €900m for a 50% stake in a German fibre roll-out joint venture it has created with telecommunications firm Deutsche Telekom.
The Melbourne-based global fund manager is buying its stake in the 50-50 joint venture GlasfaserPlus through the IFM Global Infrastructure Fund.
GlasfaserPlus is expected to build fibre-to-the-home broadband connections to more than four million homes across rural areas in Germany from 2022 to 2028.
Kyle Mangini, global head of infrastructure at IFM Investors, said: “This is an attractive investment for IFM’s Global Infrastructure Fund. GlasfaserPlus has strong socio-economic benefits as well as long-term cash-flow predictability.
“It will help us deliver on our purpose, which is to protect and grow the long-term retirement savings of working people.”
Srini Gopalan, managing director of Telekom Deutschland, said the telco plans to invest more than €30bn in fibre-optic [networks] by 2030, including the investment in GlasfaserPlus, so that all households and companies benefit from gigabit-capable fibre-optic connections.
He added: “GlasfaserPlus helps us to accelerate the digitisation [process] in rural areas. The joint venture is, therefore, an important element of our expansion strategy.”
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