Key Takeaways
- Sector: Digital Infrastructure, Telecommunications.
- Geography: Italy.
Analysis
Swedish private equity firm EQT AB has initiated the sale of a significant minority stake in the Italian division of Radius Global Infrastructure, aiming for a valuation exceeding €1 billion (approximately $1.2 billion USD).
EQT is collaborating with UBS Group AG to identify potential investors for the Italian business, which leases sites to wireless carriers, tower companies, and other digital infrastructure tenants. Non-binding bids are expected by late July, though the exact stake size remains undecided, and EQT may opt to retain the asset.
Radius operates around 7,000 sites across 21 countries, including France, the UK, Spain, and Australia. Its portfolio includes approximately 9,200 lease streams, primarily structured as triple-net ground leases, where tenants are responsible for rent, property taxes, insurance, and maintenance.
Background on EQT's Investment in Radius
In September 2023, EQT, in partnership with PSP Investments, completed the acquisition of Radius Global Infrastructure for $15.00 per share in cash, representing a total enterprise value of approximately $3.0 billion. This marked the inaugural investment for EQT's Active Core Infrastructure fund.
Under EQT and PSP's ownership, Radius has focused on expanding its portfolio of critical digital infrastructure assets globally, leveraging EQT's extensive experience in the sector to unlock new opportunities and provide attractive solutions to customers.
The proposed stake sale in Radius' Italian unit aligns with EQT's strategy to optimize its infrastructure portfolio and capitalize on the growing demand for digital infrastructure assets. The transaction is expected to attract significant interest from international infrastructure investors, reflecting the strong market appetite for stable, cash-generating assets in the digital infrastructure space.
As discussions continue, the outcome of this sale will be closely watched by industry stakeholders, given its potential to set a benchmark for similar transactions in the European digital infrastructure market.