What is APWireless buying exactly?
We are essentially buying the rights to receive mobile phone mast or rooftop installation rent for a specified period of time with certain limited rights to ensure our ability to collect the rent. The legal term for this type of transaction is called a “leasehold interest.” In some cases we may also seek an easement which is simply the right to use another person’s property for a specific purpose, namely telecom communications.
How much will APWireless pay for my phone mast lease?
The amount of the lease premium depends on the rent being received, the telecoms operators on your property, the terms of the lease agreement, the location, the duration of the lease period, and a number of other variables that make up our own risk assessment.
What happens if the telecoms operator terminates the lease or stops paying rent?
You will keep the full amount of the up-front lump sum, even if the telecoms operator terminates the lease agreement at any time after APWireless ownership commences. In other words, your lease premium transaction unconditionally transfers the risk of mobile phone mast termination to APWireless with “no strings attached.”
Can telecoms operators terminate my lease at will?
Depending on the language in your lease agreement, operators can terminate the lease for many reasons, typically with only 90 days notice. For this reason, it is generally difficult to borrow against the phone mast lease at your local bank, and also why APWireless spreads the risk of your mobile phone mast being terminated across a large portfolio of mast sites.
Wouldn’t I make more money by keeping the mobile phone mast lease?
This depends of course on how you choose to use or invest the money and whether the telecoms operator obtains a future rent reduction or if the lease agreement is eventually terminated. Even if your mobile phone mast rent continues unchanged, the cash flow associated with your phone mast lease will be distributed in small increments over a long period. In most cases, the comparison between receiving a lump sum amount today versus collecting smaller and uncertain incremental payments over a long-term period is the key decision point. Click here for potential investment scenarios.
If my mobile phone mast lease can be terminated, why do you want to buy it?
For most landlords, receiving mast site rent is an “all or nothing” proposition: either they receive rent, or they don’t. On the other hand, APWireless is building a portfolio of mobile phone mast and rooftop installation leases in which a single lease termination is far less consequential. For this reason, APWireless is able to assume the risk of your lease agreement being terminated and pay a large, up-front lump sum for the future rent associated with your phone mast site. In addition, APWireless purchases future rent on a discounted basis reflecting the financial risk associated with potential mobile phone mast terminations.
Is a lease premium transaction allowed within the terms of my lease agreement?
Mobile phone mast lease premiums are universally accepted and recognised by telecoms operators in every country where we do business, and the specific terms of the APWireless lease premium are recorded with the local land registry.
If I have multiple telecoms operators, would a lease premium apply to all of them?
A mobile phone mast lease premium applies only to those lease agreements which you choose to sell. Assuming your phone mast leases meet our criteria, APWireless will make you a lump sum offer it will stand behind.
If I convert my mobile phone mast lease to cash, will I still own the underlying property?
Yes. APWireless only purchases the rent specifically associated with your mobile phone mast site. Furthermore, after the lease premium period has come to an end, the right to receive all rent will revert back to you—unless you choose to enter into another lease premium transaction.
What happens if I sell my property?
You are free to sell your property without any restrictions and keep the money you received from the mobile phone mast lease premium in its entirety. Since the lease premium transaction is recorded with the local land registry, our contract remains valid and transfers to the new property owner, along with any rents associated with the phone mast site after the APWireless lease premium period is over.
How long will it take to receive my mobile phone mast lease premium?
The lease premium process is straightforward, but how long it takes is largely dependent on how quickly you are able to provide the required. Once we receive a valid, signed agreement from you, we will typically send you a cheque within 30 days.
Can APWireless fund the transaction quickly?
APWireless is wholly-owned and funded by Associated Partners, LP and KKR & Co., LP. We also issued $115 million of 5-year notes for which we received a BBB securitisation rating, the highest in the telecoms industry. This ensures our ability to execute and enables you to receive your lump sum payment quickly.
How does APWireless make money?
We seek a reasonable return on our investment for the risks associated with the telecoms assets we purchase and only receive this return if the mobile phone mast leases reach the full term of the lease premium period. Each year we know we will lose a percentage of mast sites in our portfolio due to mergers, consolidations, technology changes, etc. We actually lose money on mast sites that get decommissioned, but we offset these losses by negotiating upgrades, modifications and expiring lease agreements.
What happens to my phone mast site once you acquire it?
Generally, very little changes. After the lease premium transaction has closed and you have received your funds, we notify the telecoms operator(s) of the change of landlord. From that day forward until the end of the APWireless lease premium period, we deal with the telecoms operator(s) regarding financial management of the phone mast site. We will also coordinate with you if a site visit or major works are planned.
How do I get started?
APWireless will provide you with an appraisal of your lease agreement to determine if your mast site qualifies. Email us or to speak directly with one of our acquisition managers call 091 457880.