Patrizia Expands FTTH Coverage in Spain With Two Acquisitions

Specialist infrastructure investment firm Patrizia has strengthened its footprint in Europe with the acquisition of two Spanish broadband and fiber operators through its European Infrastructure Fund II (EIFII).

With these latest investments, the company will launch a new FTTH platform in Spain designed to provide high-speed broadband services to villages and towns, bridging the digital divide between the country's urban and rural areas. Patrizia Infrastructure will be identified as the additional operator pipeline for the platform acquisition, which will be overseen by two managers with 50 years of experience in the Spanish telecommunications industry.

Both acquired companies are mid-market operators in the local Spanish telecom industry. Both are located in the southern province of Cadiz. Wifi Sancti Petri's FTTH network can cover 60,000 homes, while Airwifi can connect 22,000 homes to its FTTH network. Both companies have their own fiber networks and offer broadband and mobile services that have the potential to serve more than 110,000 people in neighboring cities.

These two transactions are EIFII's sixth platform investments, bringing the fund's committed investments and co-investments to more than €800 million. They also mark the first transaction in the EIF fund series in Spain, diversifying its geography and strengthening its digital footprint, which includes UK broadband operator Connexin.

Matteo Andreoletti, Patrizia's Head of Infrastructure Equity for Europe and North America, said: "With these strategic investments, we have entered the €1.5 billion local telecoms market in Spain, which offers a very exciting opportunity to create value and attractive returns for our investors Integrating a highly fragmented market. We will leverage all of our experience in developing mid-market digital infrastructure companies to expand our new FTTH platform into an integral player in the Spanish local broadband market."

Eduardo de Roda, country head of Patrizia Spain, added: "Strengthening Spain's digital infrastructure is strongly supported by the government, as broadband connectivity in most of the country's rural areas is a key objective of the Spanish and European governments. With these strategic transactions, we are pleased to expand our infrastructure footprint in Spain and continue to grow our €2 billion portfolio of physical assets in the country."