Dutch pensions manager APG Group is starting a new joint venture in the US to support the roll-out of FTTH networks. Expanding its existing support for SiFi Networks, APG is acquiring a 16.7 percent direct stake in the company and committing USD 500 million equity to the joint venture with SiFi. APG said the venture will contribute to bridging the digital divide in the US, where over one-third of households do not have access to high-speed internet, by offering fibre connections to underserved communities.
SiFi is one of the first companies to successfully deploy FTTH networks in the US under an open-access business model. The company is constructing networks in multiple cities and has signed development agreements with several more. The increased balance sheet capacity is expected to help the company raise more funding to support capital investment in its networks.
The joint venture targets areas in the US that have not been high priority for the large telecom providers to build fibre. Whitehelm Capital will provide asset management services for the joint venture during the roll-out period.
The deal follows APG’s participation as the cornerstone investor in the Smart City Infrastructure Fund in November 2018. Whitehelm manages SCIF, and the inaugural investment in April 2019 was a partnership with SiFi to deploy fibre in Fullerton, California. The Fullerton network construction is well progressed, and live customer connections have commenced.
APG is already investing in fibre networks in Europe, with recent joint ventures with KPN in the Netherlands and Orange in Poland.
