Over 350 of the towers will be located in the Greater Seattle area, with 90% as single tenant expansion sites.
The 20 year contract with the undisclosed carrier is expected to generate an initial unlevered cash flow yield of approximately 11% per annum on $61 million of expected capital investment, based solely on the initial anchor sale. The capital investment will primarily fund the construction of over 350 route miles of the fibre network.
Zayo expects to utilise the fibre expansion to serve additional mobile tenants at these towers, as well as provide fibre-based services to universities, school districts, hospitals and content providers.
“Zayo has a successful history of leveraging assets and capital associated with signed customer transactions,” said Matt Erickson, president and COO of Zayo’s physical infrastructure segment. “Our extensible network will have the capacity not only to provide FTT infrastructure for one of the nation’s leading wireless carriers but also the fibre capacity that other existing and prospective customers need as they grow.”
