Frequently asked questions.
Why would an owner sell their mobile tower lease?
There are three main reasons why an owner may want to sell their mobile tower lease: (1) to instantly obtain the value of their lease rather than waiting to collect the rent, year after year, (2) to no longer have to worry about the administrative, contractual and financial management of the mobile tower and to entrust these aspects to a specialist management company and (3) to no longer take the risk of the lease being cancelled or renegotiated by the tenant, i.e. the telecom operator (Polkomtel, Orange, T-Mobile, P4) or the telecom infrastructure management company (Cellnex, etc.)
Why does Telium purchase mobile tower leases?
Telium’s only business activity is buying mobile tower leases. Telium’s aim is to build a large portfolio of leases on behalf of institutional investors who wish to invest in this asset class. The risks involved in each lease, including the risk of its cancellation and/or renegotiation, are varied within a broader portfolio and therefore the risk becomes reduced.
Is it not more appealing to keep your lease rather than sell it?
An owner may very well decide not to sell his lease. In doing so, they will earn their rent year after year, rather than earn the value of a one-time lease, and they will still carry the risk that in the future, the mobile tower lease may well be cancelled or renegotiated down in price. If, on the other hand, the owner has financial needs (to pay off debts, finance work or to buy equipment, etc.) they may decide to sell. In doing so, they will acquire significant capital as soon as the agreements are signed and will no longer be exposed to the cancellation or renegotiation risk.
What exactly does Telium buy?
If the mobile tower is located on a plot of land, we will buy the micro-plot (50-200m2) that surrounds the technical equipment. If a tower is located on a property that is not transferable (church, roof of a co-ownership building, water tower, etc.) we will only buy the contractual right to receive the rent paid by the telecom operators that have their mobile towers located on that property.
How will selling my lease affect my rights as an owner?
When Telium buys the land, Telium will become the owner of the plot on which the mobile tower is located and will receive rent payments from telecom operators. When Telium buys the contractual right to collect rent payments without buying the land, the owner retains ownership of the property, but future rents are paid directly to Telium. The owner is then free to sell the property or transfer it as part of an estate.
How long does a transaction take?
As soon as Telium receives all the relevant lease documentation (which will enable Telium to evaluate it), a transaction (and therefore a payment settlement by the seller) can be done in 60 days or less.
What are the tax implications related to selling a mobile tower?
Rents earned under the lease are generally considered income (for a natural person) or turnover (for a legal entity) and taxed accordingly. The sale of the lease will be considered as the sale of an asset and will also be taxed accordingly (capital gains tax), at a rate generally lower than the marginal tax rates that are usually applied to income.
What price can Telium offer me for my mobile tower lease?
Each mobile tower lease is different. Telium takes the specific factors of each lease into account in order to determine its value. These factors are commercial (who are the tenants and how long have the been renting?), financial (what is the yearly rental amount?), contractual (how many years are left on the lease, what are the cancellation clauses?), or technical (what technology is present at the tower i.e. 2G, 3G, 4G?).
What happens if the lease is cancelled or renegotiated after it has been sold?
Once the owner has given up the right to collect rent or the land on which the pylon is installed, they no longer incur the risk of lease renegotiation or cancellation. The owner will not have to reimburse Telium for any of the money that has already been received in the event of the lease’s cancellation or renegotiation.
What happens to the mobile tower once Telium has bought the lease?
Once the lease has been sold to Telium, there will not be any real changes for the owner, except that Telium will now receive rental payments in the owner’s place. Telium will notify the tenants of the sale.