1/27/25 – SLB Capital Advisors shared observations about the AT&T / Reign transaction with Commercial Property Executive
Scott Merkle, Managing Partner at SLB Capital Advisors, shared observations with Commercial Property Executive regarding the AT&T / Reign transaction
Merkle [noted] that while most sale leasebacks have “a plain vanilla structure” under which the acquirer obtains ownership of real property in return for a steady income stream from the selling business, this one is different.
“AT&T’s deal features a sweetener where they received not only $850 million at closing, but structured an ability to participate in any property repositioning driven by the acquirer, Reign Capital.”
This deal structure “serves as a template for potential future transactions for some locations in AT&T’s footprint…” . . . [and Merkle] would not be surprised to see more deals like this from AT&T down the road as it continues to transition away from copper network technology.
Read the full article here
