The €200bn asset manager PGGM has entered into a joint venture with American Tower Corporation (AMT) aimed at building telecommunications towers in Europe and leasing out telecom capacity.
Boston-based AMT, which already has operations in Germany, will transfer these activities to the joint venture, dubbed ATC Europe, in which PGGM will own a 49% stake.
James Taiclet, chairman and chief executive at AMT, emphasised the importance of PGGM’s extensive expertise in Europe for the co-operation.
“Together with AMT’s track record in investing and managing telecom property, it is a convincing basis for future investment opportunities,” he said.
Frank Roeters van Lennep, PGGM’s CIO for private markets, said: “As a long-term investor, we are keen to invest in Europe’s real economy, focusing on stable long-term returns.
“The joint venture offers a unique opportunity to join forces with the world market leader in the sector and to benefit from its enormous experience.”
A spokesman for PGGM declined to provide details about the scale of the joint venture or expected returns.
He said the venture fit within PGGM’s policy of seeking strategic investment partners as a main shareholder.
The asset manager is already in a joint venture with building firm Royal BAM, focusing on the public/private market for infrastructure in Northwestern Europe.
It has also teamed up with Legal & General to develop and rent out residential property in the UK.
American Tower is an independent developer, owner and manager of multi-tenant property in the communications sector.
It has operations in 13 countries across five continents, and its portfolio contains more than 144,000 assets.
The €185bn healthcare scheme PFZW, the €9.5bn occupational pension fund for general practitioners (SPH) and the €1.4bn scheme for private security (SPB) have invested part of their assets in PGGM’s infrastructure fund.