Real estate deal raises $850 million for AT&T’s network transition
AT&T’s sale-leaseback arrangement will optimise its real estate holdings while maintaining essential network operations.
AT&T has secured $850 million by selling and leasing back 74 underutilised central office facilities that house its legacy copper network. The deal was made with real estate firm Reign Capital and is part of AT&T’s strategy to phase out its copper network operations by 2029. The company is transitioning to fibre optic and wireless networks, which are more efficient and require less space.
The sale-leaseback arrangement enables AT&T to sell the properties while retaining the necessary space for its network operations. Michael Ford, AT&T’s global real estate head, described the agreement as a way to “unlock value in otherwise stranded commercial real estate space.” The transaction, completed in early January, impacts only a small portion of the company’s extensive real estate portfolio and will not affect jobs or services.
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