Lendlease Expanding Into $300B Telecommunications Sector By Building In The U.S.
Lendlease is expanding into the North American telecommunications sector.
The Sydney, Australia-based company will be developing 423 rooftop towers across the U.S. in order to make its mark in the digital communications market.
The group is planning to leverage its existing relationship with Softbank to move into the U.S. and saw Softbank’s recent takeover of Sprint as an opportunity to enter the market, according to The Sydney Morning Herald.
Exponential growth in tech usage and data storage capabilities, combined with the introduction of the 5G network in the U.S., means there is ample opportunity for investment in the $300B industry.
Cell tower REITs have been said to produce some of the strongest returns in the REIT market, and with mobile traffic expected to increase another 35% annually within the next five years, this trend is likely to continue.
While three REITs — Communications, Crown Castle and American Towers — currently own 75% of all U.S. telecom towers, Lendlease is hoping to grab a piece of that pie by offering carriers another option when it comes to deciding between players in the market, IPE Real Estate reports.
The company has already completed 135 towers and has another 288 under development. IPE reports that Lendlease will be looking to bring in capital from partners down the line in an effort to help its growth and focus on long-term ownership means.
