InfraRed makes substantial digital infrastructure investment through acquisition of majority stake in Deutsche GigaNetz

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Matthew Thomlinson / Jesse Mathews

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InfraRed Capital Partners (“InfraRed”), on behalf of InfraRed Infrastructure Fund V, has acquired a majority stake in Deutsche GigaNetz GmbH (“Deutsche Giganetz”), a telecommunications provider focusing on regional fibre optic development in Germany in areas underserved by established providers. The acquisition was completed on July 6th, 2020.

Deutsche GigaNetz aims to roll out and operate fibre broadband infrastructure in selected and currently underserved suburban to semi-rural regions in Germany, with a view to providing better Fibre to the Home (“FttH”) services to more than one million retail, corporate, public and carrier customers across the country. It intends to invest up to €3 billion in high-quality fibre networks, and is set to start construction of fibre infrastructure in its first target regions (Hesse and Baden-Wuerttemberg) in summer 2021.

According to figures from the OECD[1], Germany ranks 34th globally for the percentage of total broadband built on fibre connections.

Thomas Buss, Director of Infrastructure at InfraRed Capital Partners, said:

“Even prior to the pandemic, modern digital infrastructure was playing an increasingly important role in the global economy. COVID has only accelerated that trend. InfraRed’s partnership with Deutsche GigaNetz will allow us to build the next generation of high-quality fibre optic infrastructure in Germany providing services and products superior to the established providers. Fibre optics is a future-proof, scalable and power-efficient form of technology which contributes significantly to the EU’s climate goals, so this investment reflects InfraRed’s commitment to continuing to invest in sustainable community assets which support the modern economy.”

Jan Georg Budden, CEO of Deutsche GigaNetz, added:

“With InfraRed, we have found a strong partner who believes in quality and long-term investment, which is essential to provide true broadband with secured capacity to German customers and bring value to German municipalities.”

[1] https://www.oecd.org/sti/broadband/1.10-PctFibreToTotalBroadband-2019-12_new.xls

 

About InfraRed Capital Partners   

InfraRed Capital Partners is a global investment manager focused on infrastructure and real estate. It operates worldwide from offices in Sydney, London, Hong Kong, New York, Seoul and Mexico City. With around 200 professionals, it manages US$12bn of equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed Capital Partners is authorised and regulated in the UK by the Financial Conduct Authority.

InfraRed is a part of SLC Management which is the institutional alternatives and traditional asset management business of Sun Life. Over the past 30 years InfraRed has established itself as a highly successful developer and custodian of core infrastructure, renewable energy and real-estate assets that play a vital role in supporting sustainable communities.

 

About Deutsche GigaNetz

Deutsche GigaNetz GmbH builds and operates fiber networks in Germany, providing sustainable broadband access in underserved areas. Through a state-of-the-art range of telecommunication services, Deutsche GigaNetz enables municipalities, enterprises and citizens to be part of the global information society, which is vital for economic growth and the creation of opportunities.