Primevest Capital Partners has invested an undisclosed sum to buy a German fibre network on behalf of its communication infrastructure fund.

The Primevest Communication Infrastructure Fund (PCIF) has bought the fibre-to-the-curb network in the northwest town of Leichlingen.

The manager said the PCIF fund has committed to further invest in upgrading Leichlingen to a full fibre-to-the-home network.

The latest acquisition, the first such deal with a municipality in Germany for Primevest, lifts PCIF’s total investments to €75m. Primevest said the fund has a further €50m in outstanding commitments to invest in new projects which are being constructed.

Klaus Leckelt, project manager at Primevest Capital Partners, said: “Primevest’s buy-and-build strategy supports local Stadtwerke and our telecom operating partners because our investment interests are aligned in promoting the sustainable growth of these cities.

“We are a Dutch-German company, backed by responsible institutional investors such as pension funds, which focus on sustainable long-term returns and partnerships.”

Frank Steffes, mayor of Leichlingen, said: “This agreement creates a solid base for Leichlingen’s internet broadband coverage. By selling the existing network, we are facilitating the expansion of future-proof broadband connections without burdening the city’s own financial resources.”

PCIF, established in 2017 and backed by German institutional investor capital, has a target investment volume of €600m and is open to new investors until the second quarter of 2021.

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