Berlin, Germany – – Commerz Real, a subsidiary of Commerzbank, has taken a minority stake in ATC Europe, one of Europe’s leading tower companies, through its newly launched infrastructure fund, Infravest. The investment was made in cooperation with Allianz Global Investors, with Allianz insurance companies remaining invested in ATC Europe.
The financial terms of the deal have not been disclosed. This marks the first investment for the recently established private investor fund, Infravest, signaling a strategic move by Commerz Real to expand its infrastructure portfolio into the digital communications sector.
ATC Europe, the European arm of American Tower Corporation, boasts a portfolio of over 30,000 mobile radio towers across Germany, France, and Spain. Germany represents a particularly significant market for the company, hosting approximately 15,000 of these sites. The company’s extensive network is crucial for mobile network operators seeking to expand coverage and meet the growing demand for mobile data.
Michael Henn, Global Head of Green Deal Infrastructure at Commerz Real, emphasized the appeal of ATC Europe’s business model. “ATC Europe’s business model is focused on investments in critical infrastructure and is characterized by long-term, inflation-protected rental agreements with major telecommunications providers, which enable stable and predictable returns,” Henn stated. “Through the continuous expansion of new sites, ATC Europe contributes to closing existing gaps in mobile coverage and meeting the growing need for mobile data transmission. Thanks to our cooperation with Allianz Global Investors, we were able to secure a stake in this attractive business for our investors.”
The investment comes at a time of increasing focus on digital infrastructure as a key asset class. The rollout of 5G networks and the continued growth of mobile data consumption are driving demand for tower infrastructure across Europe. This demand is further fueled by the need to improve mobile coverage in rural areas and to support the increasing number of connected devices.
Allianz Global Investors will manage the investment on behalf of Infravest. The continued investment by Allianz insurance companies underscores confidence in the long-term prospects of ATC Europe and the broader tower infrastructure market.
The acquisition by Commerz Real and Allianz Global Investors follows a period of consolidation within the European tower market. reports indicated American Tower was among companies considering acquiring French towers, while Allianz Global Investors had previously been involved in acquisitions within the sector.
This deal highlights the growing trend of institutional investors seeking exposure to essential infrastructure assets that offer stable, long-term returns. Digital infrastructure, in particular, is viewed as a resilient asset class, less susceptible to economic downturns than other sectors. The long-term contracts with mobile network operators provide a predictable revenue stream, making ATC Europe an attractive investment for pension funds, insurance companies, and other institutional investors.
The expansion of ATC Europe’s network is also seen as contributing to broader policy goals related to digital inclusion and economic development. By improving mobile coverage, the company is facilitating access to essential services, such as education, healthcare, and financial services, particularly in underserved areas.
Commerz Real’s move into digital infrastructure with the Infravest fund represents a diversification of its investment strategy. The company, with approximately €35.5 billion in assets under management, has traditionally focused on real estate investments. The addition of digital infrastructure assets is expected to enhance the fund’s overall risk-adjusted returns and provide investors with exposure to a high-growth sector.
The transaction also reflects the broader trend of convergence between real estate and infrastructure. As digital infrastructure becomes increasingly integrated into the built environment, the lines between these two asset classes are blurring. This convergence is creating new investment opportunities for investors seeking to capitalize on the synergies between physical assets and digital networks.
While the specific details of the investment remain confidential, the acquisition by Commerz Real and Allianz Global Investors signals a strong vote of confidence in the future of ATC Europe and the European tower market. The deal is expected to spur further investment in digital infrastructure across the region, driving innovation and improving connectivity for businesses and consumers alike.
