PCIF invests in critical telecommunications infrastructure, which it leases to multiple operating partners, including Vodafone and now YPlay in Germany and T-Mobile in the Netherlands. The Fund has committed to financing the replacement of the existing copper cables with optical fibre for the communities in and around Wetterau, upgrading this to a full Fibre to the Home “FttH” network, dependent upon sufficient consumer demand.

Despite its position as Europe’s largest economy, Germany lags behind in the provision of modern telecommunications infrastructure, with below 5.0% of households able to access the latest generation of superfast broadband services through FttH networks. It is estimated that between €70 billion to €80 billion of investment is required to upgrade all German municipalities to FttH, which in turn provides institutional investors with an enormous opportunity to participate in the ‘Smart City’ infrastructural investment of the future.

Klaus Leckelt, Project Manager at Primevest Capital Partners, said: “In an era where home working and home internet use for e-commerce and leisure activities is increasing exponentially, PCIF provides the necessary capital that allows people access to the high-performance fiber optic networks that are becoming a basic necessity of life. This ‘future-proofed’ telecommunications infrastructure ensures that consistent bandwidth and quality of services can be delivered to customers across the board.”

Yplay’s existing fiber optic network will be accessible to Wetterau households once the existing copper cable connections have been replaced, with FttC migrated to an FttH network over the next few years. The new FttH connections are being built by HessenKom GmbH & Co. KG (HessenKom) and will be leased by PCIF to YplaY. The first customers in the Altenstadt district will be migrated to the new FttH connections shortly with other areas already under development.

Peer Kohlstetter, Managing Director of HessenKom and YPlay, said: “This agreement creates a solid foundation for high-speed and reliable broadband coverage for our customers. With PCIF’s investment we are able to take over the existing network and enable the expansion of future-proof broadband connections without needing to invest our own financial resources in the network expansion and construction. This cooperation in Hessen means we are leading the way in the migration of existing FttC infrastructure to the next generation of fiber optic cables.”

PCIF will be investing a further €50 million in new fiber optic networks in other areas of Germany in the near future, including areas around Altenstadt, Lower Saxony, Baden-Württemberg and North Rhine-Westphalia.

Klaus Leckelt, Project Manager at Primevest Capital Partners, concluded: “Our buy-and-build strategy supports local operating partners and municipalities in achieving sustainable growth through the responsible deployment of the capital of our institutional investors, such as insurers and pension funds.”
Primevest will coordinate both current and future network expansions and upgrades to ensure that the infrastructure is optimally tailored to the needs of the operator.

Founded in 2017, PCIF, provides residents and businesses in cities access to high-speed broadband connections. The Fund has a target investment volume of €600 million and is open to new institutional investors until the second quarter of 2021. Its focus is on passive communication infrastructure, such as fiber optic networks, cell phone towers and data centres which are needed to meet the increasing demand for broadband and to enable smart cities. PCIF works closely with telecommunications and cable operators, municipalities and other stakeholders and offers investors stable cash flow based on long-term leases with network operators.

About Primevest Capital Partners
Primevest Capital Partners is a pan-European investment boutique that specialises in innovative real estate and property investments. Due to its extensive industry knowledge with a focus on specialised investment sectors such as parking, telecommunications and affordable, contemporary living, Primevest Capital Partners has developed into a leading provider in these areas. Our top priority is to achieve attractive risk-adjusted returns for our customers. In doing so, we pay attention to sustainable income and value creation. Primevest Capital Partners currently manages assets of € 1.7 billion, spread across eight sector-specific funds and three individual institutional mandates. Primevest Capital Partners currently has 40 employees at its locations in Utrecht and Berlin.

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