Brazil-listed PE firm GP Investments has agreed to purchase 2,000 towers across Brazil for R$503m (US$247m) from an unnamed operator.
GP said it has created a new company to own the assets, called BR Towers, which will see the bulk of its revenues come…
Brazil-listed PE firm GP Investments has agreed to purchase 2,000 towers across Brazil for R$503m (US$247m) from an unnamed operator.
GP said it has created a new company to own the assets, called BR Towers, which will see the bulk of its revenues come from leasing the towers and land to operators.
GP acquired the towers through its wholly-owned subsidiary GP Capital Partners V, a private equity fund managed by GP Investments V, which itself is a wholly-owned subsidiary of GP Investments.
A number of reports emanating from Brazil have suggested that the operator which sold the towers was Vivo, owned by Telefonica Brazil.
In a statement, GP said it believed Brazil’s tower market would expand considerably over the next five to 10 years because of 3G and 4G coverage goals. GP plans to increase the number of tenants per tower.
“The increasing tower related capex, coupled with large investments expected from telecom operators in the coming years, create an opportunity for BR Towers to expand its operations at a fast pace through both built-to-suit contracts and the acquisition of additional portfolios of towers,” stated the firm.
GP focuses on investments in Latin America, and said it has raised more than US$5bn from private equity investors since its inception.
It listed on Sao Paulo’s BM&F Bovespa in 2006, however the company is headquartered in Bermuda.
