AT&T has closed a sale-leaseback of 74 US properties with Reign Capital, which will generate the telecommunications giant more than $850 million in cash. Also, the move will allow AT&T to explore redevelopment opportunities and allows revenue sharing on the assets.
According to AT&T, the 13 million square feet of properties only represents a small part of the company's central office portfolio. The deal will not negatively affect service or jobs and noted it is "leasing back space that's needed for the network." This will help AT&T cut operating expenses, trim power consumption, and turn away from copper networks, and allows it to earn money from the sold properties in the future.
"The agreement includes provisions for financial participation in redevelopment revenues, ensuring long-term benefits from future property value increases," the Dallas-based firm said in a statement.
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