But what are the advantages of doing so?
This could then be invested as you felt appropriate, whilst also eliminating the uncertainty of the ever changing mobile market, particularly bearing in mind the recent news of the changes to the telecommunication code.
We have acquired over 1500 such sites in the UK and the land owners we have worked with do so for the following reasons:
• Eliminate decommissioning risk and any future rent reduction
• Release capital to invest in a higher return project or development opportunity
• Benefit from our extensive market knowledge to maximise the value of the site
• Eliminate the time and cost burden of managing the lease and dealing with the mobile operators
As a mobile phone site landlord you may think that because you have signed an agreement with the relevant operator to use your land and or building that the income is guaranteed, far from it.
Do you know what break option the operator has under the existing lease?
Wanting to maintain a fluid network, they will have the right to terminate the lease and in some cases on giving as little as just 1 months’ notice. By accepting a lease premium agreement you are completely de-risking this idle asset. For the avoidance of doubt should the operator ever terminate the lease there is no repayment of any of the premium to us, this is simply a risk we take.
The telecoms market is unique in its’ nature that if you were ever to lose an operator the chances of replacing them are almost nil. With the consolidation of networks, the marketplace is ever changing and with the introduction of the pending changes to the Telecommunications Code under the digital economy bill the telecoms industry is facing considerable changes going forward. Taking a lump sum premium for your site now does away with the associated risk and releases a guaranteed lump sum to better invest elsewhere.
If you think a lease premium agreement is the best option for you or simply want more information, give us a call today! Our experienced team will be only too happy to help guide you through the process and answer any questions you may have.