PLDT has announced the first completion on the sale and leaseback of 135 telecom towers and related passive telecom infrastructure to Unity Digital Infrastructure Inc. for P1.9 billion (approximately USD 34 million).
PLDT has stated that it anticipates transferring more towers in the coming months as the necessary closing conditions are fulfilled, aiming to finalize all transfers by the end of 2023.
Unity is a telecommunications infrastructure platform formed through a joint venture between Aboitiz InfraCapital, a subsidiary of the Aboitiz Group, and Partners Group. This partnership is dedicated to constructing and managing telecommunications towers and related infrastructure throughout the Philippines.
In December of last year, both companies entered into sale and leaseback agreements for a total of 650 telecommunications towers and their accompanying passive telecommunications infrastructure, with a combined value of P9.2 billion (USD 164 million).
Once the transaction is finalized, Smart Communications Inc., a subsidiary of PLDT, will enter into a 10-year lease agreement for the towers at favorable terms, serving as the primary tenant. In addition to the sale and leaseback arrangement, there will be a commitment to construct an additional 220 towers in the coming years.
In March, PLDT further solidified its telecommunications infrastructure by entering into a share purchase agreement with a Pinnacle Towers Pte. Ltd. subsidiary. The agreement involved the acquisition of 1,012 telecommunications towers and related passive telecommunications infrastructure, primarily situated in Luzon. The total value of the transaction amounted to P12.1 billion (approximately USD215 million).
Upon completion, which is projected to take place within this year, the transaction will contribute to a cumulative count of over 7,500 towers that have been monetized through sale and leaseback arrangements. The total value of these transactions exceeds P98 billion (equivalent to around USD1.7 billion).
Alongside PLDT selling towers, the company has announced plans of boosting data capacity through the expansion of its data center capacity and launching another subsea cable.
In February, PLDT announced increasing its capacity to address the requirements of customers as digitalization in the country further picks up. The company also disclosed that it engaged in preliminary talks with financial advisors regarding the possibility of attracting prospective investors for its data center business.
Recently, PLDT has also announced its plan to collaborate with potential consortium partners to launch another subsea cable project as it aims to enhance its international data capacity to a remarkable 1,000 terabits, or 1 petabit, within the next five years.
