What is a telco (or telecom) lease?

It’s a lease that allows a wireless telecom/ telco provider to construct and operate a telecom tower on a property land or rooftop for a set period of time. The telecom operator pays the property owner rent on a regular basis for the right to continue to operate the telecom tower on the property.

How are telecom tower leases valued?

Radio frequency engineers in the telecom industry determine the locations of new towers based on the needs of their networks. Telecom tower rental rates are determined by how critical a tower location is to maintain wireless network coverage in a given area.

If you receive rent for a Telstra, Optus, Vodafone NBN, Amplitel, Indara or Waveconn telecom tower or rooftop antenna on your property, LDC Infrastructure is interested in speaking to you about a telecom tower lease buyout. If your site qualifies, we may be interested in buying your telecom lease rights for a significant, lump sum cash payment. Other tenants are evaluated on a case-by-case basis.

We have extensive experience in this sector because telecom site lease buyouts are our core business. Our executive management team actually pioneered the telecom lease acquisition industry. We buy numerous telecom leases every year, always providing a tailored solution to the property owner.

Why should you sell your telecom lease rights?

The decision to sell your telecom tower lease may be driven by the need to cover a critical and immediate financial need. Other property owners sell their telecom lease rights to use the proceeds for a real estate, securities or other type of investment.

The exciting news is that you can tap the hidden value of your telecom lease rights while simultaneously eliminating risk of a site decommissioning or rent reduction. LDC Infrastructure offers an immediate cash payment in exchange for your lease rights.

Factors Influencing Telco Lease Rates

Several factors determine the rental rates for telco leases:

• Location: Properties in urban areas with high population density or strategic importance often command higher rents due to increased demand for network coverage.
• Property Elevation and Accessibility: Sites with higher elevations or those that are easily accessible may be more desirable for telecom operators, potentially leading to higher lease rates.
• Alternative Site Availability: If few alternative sites are available in the area, property owners may have greater negotiating power, resulting in higher rental rates.
• Market Demand: The overall demand for network coverage and capacity in a region can influence lease rates.

Evaluating the Value of Your Telco Lease

Determining the value of a telco lease involves assessing various factors, including:

• Current Rental Income: The amount and frequency of rental payments received.
• Remaining Lease Term: The duration left on the existing lease agreement.
• Market Conditions: The demand for telecom infrastructure in the area and prevailing lease rates.
• Lease Terms: Specific provisions within the lease that may affect its value, such as escalation clauses, renewal options, or consent clauses.

What is your Telco lease worth? Find out today

Even if you don’t need cash right now, it may still make sense to know the value of your lease rights. If your site meets our criteria, we can provide you with a no obligation analysis and valuation. Please call us at 1300 149 449 or click here to submit your information online so that we may contact you.