Seeking value in the Brazilian towers market
The Brazilian towers market has been capturing investors’ attention, with ten major tower transactions since 4Q 2011 and approximately 7000 new towers expected to be built during 2014. A peculiarity of the market is the distinction between the players focusing on the buy-and-leaseback market, and those focusing on the build-to-suit market. In this article, we examine the value drivers for both these segments of the tower space.
Buy and leaseback: the attractiveness of towers varies considerably between portfolios
In recent transactions in Brazil, tower portfolios have been sold at an average price of USD175 000 per tower (see Figure 1).