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Major transactions and acquisitions are often underpinned by deep technical expertise and analytical rigour that builds confidence at every stage of the acquisition process.
As part of one of Europe’s largest digital infrastructure deals of 2022, Arup provided buyer side technical due diligence to Brookfield Asset Management for its acquisition of part of a 51% stake in GD Towers, Deutsche Telekom’s tower portfolio in Germany and Austria.
Consisting of approximately 40,600 sites and valued at $17.5 billion, the asset portfolio included Deutsche Funkturm, Germany’s largest tower company, and Magenta Telekom Infra, its wireless real estate businesses.
Project Summary
51% stake in GD Towers
€17.5bnenterprise value
40,600tower portfolio
Delivering confidence
There is no one-size-fits-all approach to ensuring all acquisitions are successful. Our technical and commercial specialists played a pivotal role in Brookfield’s acquisition strategy through due diligence, building a deep understanding of the organisation and providing a technical framework for the proposed investment that brings about mutually beneficial value.
Our rigorous technical due diligence process included views and recommendations on the asset condition, structural capacity, capital expenditure (CapEx) and operational expenditure (OpEx) analysis. These insights combined to inform the extensive client valuation strategy, revealing possible risks and opportunities, such as areas where optimisation can be achieved.
We undertook a comprehensive review of the asset, including site visitation, asset database analysis and expenditure analysis, which allowed the client to benefit from high quality and reliable assets and stable cash flows.
For Deutsche Telekom, the acquisition allows the organisation to focus on strategic projects and support growth from the continuing roll out and industry consolidation of 5G. As a mutually beneficial proposal, our team provided valuable advice regarding asset improvement and future progress.
Client collaboration
The collaboration of a multi-national team across UK, Germany, and South Africa brought together experts in transactions, digital advisory and structural design. This unique blend of expertise empowered the client to value the asset correctly and confidently, leading to complete valuation that can generate future returns.
The basis of the technical due diligence was initially outlined by a model from the client. Brookfield specified their expectations and valuation of the asset which our team appraised. Our approach provided an accurate analysis for a mutually beneficial partnership, encouraging future opportunities for growth.
In partnership with digital infrastructure firm Digital Bridge, Brookfield will provide both expertise and opportunity to develop and evolve the GD Towers strategic plans and ambitions in the future.
