Ground lease management: maximising the value of the land under CALA cell towers
Lessons learned from the round table at the TowerXchange Meetup Americas 2016, including insights into ground lease aggregation in the region
While ground lease costs remain the primary operating expense for tower networks in CALA, in most markets, lease costs are a pass through to the tenant. However, we have started to see some MNOs seeking to share lease costs with their towerco partners, while other towercos have sought to acquire the land under their most strategic towers to increase security – particularly against the growing threat of ground lease aggregators.
Ground lease aggregators in CALA
Ground lease aggregators seek to acquire the land under the most profitable cell towers, typically by offering the landlord a lump sum buyout.