Global Tower Partners buys DukeNet tower assets

Global Tower Partners closed on 141 towers it bought from DukeNet Communications L.L.C., giving GTP an increased presence in eight states, including assets in key markets in Ohio and the Carolinas. Financial terms of the transaction were not disclosed.
This is GTP’s 42nd acquisition this year, said CEO Marc Ganzi, adding the company picked up more than 400 towers in 2009. The Boca Raton, Fla.-based company bought 235 towers from AT&T Towers in January and paid more than $9 million for tower assets bought from SureWest Communications in February; the majority of the rest of the purchases were smaller. The trend toward smaller purchases will continue going forward simply because there aren’t that many significant portfolios in the industry, he noted.
The DukeNet assets were attractive for a number of reasons, Ganzi noted. The towers in Cincinnati, Raleigh/Durham, and Charlotte, N.C., are located along transmission and substation infrastructure that are attractive. DukeNet is a subsidiary of Duke Energy, one of the largest electrical power companies in the United States, delivering service to 4 million U.S. customers. Further, GTP bought 24 towers from DukeNet in 2003, when Ganzi started the company, “and they have done very well for us.” Also, Ganzi noted the assets were bought for 68% of replacement cost, “an intelligent acquisition for us.”
GTP is building two towers for Duke as part of the utility company’s smart-grid initiative.