Australia’s Future Fund leads a group of investors’ participation in the purchase of Telstra InfraCo Towers


Posted on 06/30/2021

The Australian’s Future Fund (as the largest investor) is leading a group of investors to buy a 49% stake in InfraCo Towers from Telstra Ltd. InfraCo Towers represents the largest network of mobile tower sites in Australia. The other investors in the buying group are Sunsuper and the Commonwealth Superannuation Corporation (CSC). Morrison & Co will manage the asset.

Telstra InfraCo Towers owns and operates approximately 8,200 tower assets, including more than 5,500 mobile towers supporting critical digital infrastructure across Australia. The transaction values ​​the company at A $ 5.9 billion and the transaction is expected to close in the third quarter of 2021. Telstra will retain a 51% stake in the company and has entered into long-term service agreements with InfraCo Towers for ensure continuous access to services that support their presence in mobile and data services. Telstra expects net cash proceeds after transaction costs of A $ 2.8 billion on completion and the Towers entity will be debt free. Telstra has entered into a 15-year agreement (with option to extend) with InfraCo Towers to ensure continued access to existing and new towers. Telstra’s 5G technology now covers almost two-thirds of Australia’s population.

The Future Fund is a major investor in Australian infrastructure. The sovereign wealth fund wants to gain exposure to digital infrastructures and the long-term theme of data growth.

Telstra invests in 26 GHz spectrum auction
On April 23, 2021, Telstra announced that it had secured 1000 MHz in the 26 GHz spectrum auction, investing AU $ 277 million to further expand its leadership in 5G today and into the future. Telstra secured the spectrum in all major capitals and regional regions where it was sold. Telstra CEO Andrew Penn said the new mmWave spectrum will significantly increase capacity and speeds for Telstra customers. Telstra intends to pay for the spectrum in five equal annual installments.


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