electricity tower

Case study Fortysouth

Creating a more connected future for NZ

Fortysouth is New Zealand’s (NZ) leading independent digital infrastructure partner – delivering a more connected future through transformative technology.


Fortysouth is the first independent mobile tower operator in NZ. With over 1,500 wholly owned towers – covering 98% of New Zealand’s population – Fortysouth enables mobile network operators, fixed wireless providers, and critical communications operators to deliver transformative services that connect New Zealanders to each other, and the world. 

InfraRed, as the investment manager of one of the largest UK-listed core infrastructure investment companies, and co-shareholders identified an opportunity to acquire a portfolio of towers from One NZ (formerly Vodafone New Zealand), with a contract for significant expansion. The carve-out allowed One NZ to focus on its core activities, while standalone towers management focused on the improvement opportunities for the towers business. The separation also drives greater efficiency in the industry, by promoting co-location of multiple operators’ equipment on the same infrastructure. 

Fortysouth benefits from a long-term, availability-based revenue contract with One NZ, that is indexed to inflation. One NZ has also committed to additional sites over the next ten years which provides cashflow visibility and a growing asset base. 

The portfolio now includes more than 1,500 towers, providing the passive infrastructure networks needed to deliver high data speeds and low latency – moving New Zealand towards a more connected future. One NZ retains the responsibility for the ‘active’ telecommunications equipment mounted on the towers. 

  • Initial investment


  • Theme

    Communications & Digital Infrastructure

  • Strategy

    Core Infrastructure

  • Country


Fortysouth Key statistics

  • 1,500+


  • 98%

    population coverage

  • 660+

    regional / rural locations

  • 945+

    large macro and monopoles

Electricity tower covered in snow


The success of the carve-out is a prime example of InfraRed’s proactive, structured approach to asset management.

Together with our partners, we have assembled an experienced management team and Board; by launching this process before closing – while regulatory approvals were progressing – we were able to promptly recruit key executives and members of the Board.

As part of the bidding process, InfraRed drew up a detailed carve-out plan covering staff transition and recruitment, operating manuals, reporting, and technology set-up. This meant that – upon signing the transition agreement with One NZ – we were able to go straight into execution, delivering a seamless transition by financial close and establishing Fortysouth as an independent provider.

During the initial stages of the carve-out, while the management team was being established, we positioned shareholder governance at a granular operational level – then transitioned to a more typical board-led corporate governance model as the management team was established.

Further reading