Communication Infrastructure

Enabling Connectivity

As our use of data continues to grow exponentially, so does the need for investment in the infrastructure that supports it.

 
 
 
     
 

Enabling connectivity and the advancement of cities

In 2020, as the Covid-19 pandemic fundamentally changed the way in which we live, work and communicate, our reliance on data accelerated. The pandemic condensed years of change into a few short months. And much of that change is here to stay.

At Primevest Capital Partners we identified the need for investment in this vital infrastructure and launched our first fund in 2017.  First-mover advantage allowed us to build an in-house team of industry experts and become an essential interface between investors on the one hand and municipalities and operators on the other. We help both sides to understand each other. Our knowledge of these assets enables us to optimise the return for our investors. It is an exciting place to be, unlocking the potential that these assets offer while enabling connectivity and the advancement of cities.

Our approach allows investors to access a stable asset portfolio with a low risk/return profile. Attractive returns are generated in three ways: first, direct yields from regular rental payments; second, leases include automatic year-on-year inflation (CPI) adjustments; third, capital gains are created from the enhancements we make to the assets or increased utilisation rate of the network.

Our ownership opens up these assets to multiple operators, allowing for greater consumer choice, improved usage, and higher rental levels. To reduce risk, we limit investor exposure to technology by not investing in the underlying operators, although we have developed strong relationships with many, such as T-Mobile, Vodafone and many regional telecom operators. These partnerships mean we can present ready-made solutions to municipalities as they seek to improve their connectivity.

Investment Criteria

We are selective as to the assets we invest in. All of which are focused on improving consumer and business access to fixed and mobile broadband and include:

  • Fixed-line fibre infrastructure: Our investments allow for expanded capacity through the installation of high-speed fibre-optic cabling, which we lease to multiple operators.
  • Mobile communication and broadcasting towers: Can be shared by operators, thereby increasing usage through site pooling.
  • Communication nodes (data centres), where we mainly invest in the shared infrastructure needed to keep them operational.

Geographically we are mainly focused on urban areas with sufficient population density and solid commercial locations which are underserved by telecommunication infrastructure in Germany, Austria, the Netherlands and Belgium. For example, Germany, Europe’s largest economy, lags many other countries when it comes to fifth-generation high-speed internet provision and it is estimated that around €80 billion is required to modernise its fixed-line fibre cabling.

For more information about Smart Cities, please visit our Smart City Nederland website (in Dutch only).

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‘For decades we have invested in building roads, railways and bridges - the essential infrastructure that connects people physically. We now have the ability to invest in the digital infrastructure to connect people virtually.”’

Bas van Dongen, Partner

Communication Infrastructure
 

Our Expertise

Technology undoubtedly plays a key role in the development of future cities and our goal is to enable connectivity through investment in communication infrastructure including cables, antennae, ‘smart lamp posts’ and data centres.

 
 

The Future

Investing in telecommunication infrastructure is still in its infancy. But as recent events have shown, we are all now heavily dependent on these assets to manage our daily lives.

 
 

This infrastructure forms the digital highway over which data is transmitted and, as we consume more and more, investment needs to expand in tandem. Across Europe, billions of funding in communication infrastructure are required to modernise networks and facilitate better connectivity for all.

Sustainability is interwoven into this picture through the use of modern fibre-optic cables, which are the communication backbone of our cities, carrying far more data and being much more energy efficient than traditional copper-wire cables. In the emerging new urban landscape, the oldest technology on the street becomes the smart lamp post used to charge electric cars, or as data transmission masts facilitating the monitoring and reduction of energy consumption.

 
 

As we look to the future of cities, fifth-generation broadband and mobile towers will be essential if we are to have sufficient capacity to distribute and manage the data that will be needed. Already consumers use apps on their phones to regulate the lighting and heating in their homes. Most of us stream our entertainment directly to our phones, computers and televisions. Adoption of e-commerce has accelerated. Working virtually has become, and will remain, commonplace since the attraction of home working has been boosted by the pandemic, with employers seeing that productivity levels remain unchanged and that for many, quality of life has been improved through the reduction in commuting. People will return to their offices, but perhaps not on a daily basis. This will have a beneficial effect by reducing congestion in our cities and on our road and rail networks. As we shop, live, relax and learn remotely, demand for data continues to rise inexorably and the infrastructure required to handle these flows will grow in tandem, also offering opportunities for sustainability gains.

Fibre-optic cabling is more energy efficient than old copper wiring and smart lampposts where we can charge our cars, transmit data, or survey the urban realm, will help us to reduce our impact on the environment and deliver improved safety and security.

Smart phones, smart homes and smart cities all need access to data, delivered through fixed communication infrastructure. At Primevest Capital Partners our investment in that infrastructure is enabling connectivity.

 
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Projects

 
 
 

Smart City project Renkum

Renkum recently became the first 'smart' district in Europe after installing this sustainable and adaptable form of street lighting.
 

Hannover North area rollout

Primevest Capital Partners has signed the agreement for the glass fibre roll-out…
 
 

Eindhoven Glass Fibre roll-out

Eindhoven has signed an agreement for 29,000 households with T-Mobile and infrastructure…
 

News

 
 
 
08.12.2021   News

Primevest Capital Partners invests €6 million to extend Hüllhorst, Germany’s…

Primevest Capital Partners (Primevest CP) and partners GFS, gustav and Westenergie / Westnetz are investing €6 million to extend the existing fibre…

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