(Reuters) -AT&T stated on Friday it has secured $850 million via the sale-leaseback of its underused central workplace services that home its legacy networks to actual property improvement agency Reign Capital.
The U.S. telecom main is planning to exit a majority of its copper community operations by 2029 as prospects shift to newer applied sciences akin to fiber optics and wi-fi networks, which supply superior velocity and reliability and require a smaller area to function.
Sale-leaseback is a financing possibility through which an organization sells a part of its belongings to boost capital and leases again the identical property to run its operations.
AT&T (NYSE:) will lease again solely the area required for its community operations.
“The uniquely structured deal unlocks worth in in any other case stranded business actual property area,” stated Michael Ford (NYSE:), head of worldwide actual property at AT&T.
The transaction, which closed in early January, contains asset switch of 74 properties throughout the nation, affecting solely a small portion of AT&T’s portfolio of central workplaces and has no impression on jobs or adjustments within the providers, the corporate stated.
The Dallas, Texas-based firm’s shares rose 0.7% in early buying and selling.
