Mark Wallace has been named CFO of US enterprise operator Windstream’s planned publicly-traded real estate investment trust, Communications Sales & Leasing.
Last week Windstream’s board gave final approval for the tax-free spinoff of CS&L, which…
Mark Wallace has been named CFO of US enterprise operator Windstream’s planned publicly-traded real estate investment trust, Communications Sales & Leasing.
Last week Windstream’s board gave final approval for the tax-free spinoff of CS&L, which will hold a significant amount of its network assets, in what could be a game-changing structure for telcos.
Wallace’s has significant experience in REITs. He was previously managing director at Fortress Investment Group where he served as CFO and treasurer of New Senior Investment Group, a senior housing REIT that completed a spinoff in late 2014. He also served as executive vice president, CFO and treasurer of HCP, a healthcare REIT.
A REIT trades like a stock but only invests in real estate. They receive special tax considerations and typically offer investors high yields. Last year Windstream received approval from the IRS to class some of its network assets as real estate in what was a first for the telecoms sector.
In February Windstream appointed Kenny Gunderman, previously a banker with Stephens who advised the operator on the potential spin-off, as CEO of CS&L.
Commenting on Wallace’s appointment, Gunderman said: “He is a seasoned CFO with extensive REIT and capital markets experience, and I look forward to working with him to continue building our team and our business.”
Following the spinoff, expected soon, Windstream will lease back the network assets from CS&L through a long-term triple-net exclusive lease.
CS&L will focus on expanding and diversifying its assets and tenants through future acquisitions.
