For Brookfield, the acquisition of Deutsche Telekom offers a chance to buy in to a stable stream of cash flow
, much like Canadian pension funds, is betting heavily on telecom infrastructure by co-investing in one of the largest ever purchases of cellphone towers, lured by the steady revenue streams from these assets.
Brookfield spokesperson Sebastien Bouchard said Brookfield Infrastructure’s flagship investment fund, which has numerous outside investors, will contribute US$2.5-billion of equity in the transaction. Brookfield Infrastructure itself has a 25-per-cent interest in its fund, meaning it will commit just more than US$600-million of its own money for the deal, he said. Funding for its stake will be “through an active capital recycling program,” meaning proceeds from the sale of existing assets.
On June 22, the infrastructure division of Ontario Municipal Employees Retirement System said it would acquire Stilmark, an independent Australian developer, owner and operator of mobile towers, for undisclosed terms. The transaction was OMERS’s second announced tower investment in Australia in as many months, after it said in May it would acquire TPG Telecom Ltd.’s portfolio of mobile towers and rooftop sites in a deal valued at 950 million Australian dollars.
This week’s deals from Brookfield and Teachers suggest cell-tower assets are not coming cheaply. Spark said the transaction with Teachers values the tower business at 33.8 times its 2023 EBITDA, or earnings before interest, taxes, depreciation and amortization. Across all classes of infrastructure, such as power plants and toll roads, Brookfield says it has $140-billion in assets that employ 44,000 people.
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