Frequently asked questions.
Why would an owner transfer the management of his site to a professional?
An landowner may decide to entrust the management of his site to an expert like MTGS mainly for three reasons: (1) to monetize the value of his lease immediately rather than to wait to collect the rent, year after year, (2) to no longer be in charge of the administrative, contractual and accounting management of the site and entrust these tasks to a specialized manager and (3) to no longer incur the risk of termination or renegotiation of the lease by the tenant, i.e. the telecom operator (Vodafone, Orange, Movistar, Yoigo) or the telecom infrastructure manager (Cellnex…).
Why does MTGS manage mobile tower sites?
MTGS’s only business line is to manage mobile tower ground sites. MTGS’s objective is to build a large portfolio of sites on behalf of institutional investors who wish to invest in this asset class. The risks inherent in each lease, in particular the risk of its termination and/or renegotiation, are diversified in an large portfolio and the risk is therefore diluted.
Isn't it more attractive to continue to manage my site rather than to hande it over to MTGS?
A landowner may well decide to continue to manage his site himself. By doing so, he or she will collect the rent year after year, rather than monetize the value of the lease through a lump-sum payment, and will continue toincur the risk that, in the future, the tower lease will be terminated or renegotiated downwards. On the other hand, if the owner has financial needs (to reduce debt, to finance works or to buy equipment, etc.), wishes to earn additional income, and no longer wishes to bear the administrative costs associated with his site, he may decide to hande its management over to MTGS. By doing so, he will collect a significant capital sum upon closing of the deal, he will no longer be exposed to the risk of termination/renegotiation and he will have the option to generate additional revenues.
What exactly does
MTGS manage ?
If the mobile tower is located on a plot of land, we will manage the micro-plot (50-200m2) that surrounds the technical equipment. If a tower is located on a property that is not transferable (church, roof of a co-op building, water tower, etc.) we will only handle the contractual right to receive the rent paid by the telecom operators that have their mobile towers located on that property.
How will the transfer of my site affect my rights as an owner?
It all depends on the structure of the transaction: when MTGS takes your site under management through a land acquisition, MTGS becomes the owner of the micro-plot on which the tower is installed. When MTGS recovers contractual management rights without buying the land, the owner retains ownership of the property but gives MTGS the rights to manage the infrastructure. The owner remains free to sell the property in the future or to pass it on.
How long does a
As soon as MTGS receives all the relevant documentation (which will enable MTGS to perform a proper valuation), a transaction can be completed in 60 days or less.
What are the tax implications related to handling the management of the site?
Rents earned under the lease are generally considered income (for a natural person) or turnover (for a company) and taxed accordingly. The sale of the lease will be considered as the sale of an asset and will also be taxed accordingly (capital gains tax), at a rate generally lower than the marginal tax rates that are usually applied to income. If we work together, we will make sure your tax situation is optimized.
What price can MTGS offer me?
Each mobile tower site is different. MTGS takes the specific attributes of each site into account in order to determine its value. These factors are commercial (who are the tenants and how long have they been renting?), financial (what is the yearly rental amount?), contractual (how many years are left on the lease, what are the termination clauses?), or technical (what technology is present on the tower i.e. 2G, 3G, 4G?).
What happens if the lease is cancelled or renegotiated after it has been transferred?
Once the owner has transferred the management of his site on to MTGS, he no longer incurs the risk of renegotiation or cancellation. In the event of the termination of the lease or its renegotiation, the owner will not have to refund MTGS any of the money that has already been paid to him.
What happens to the site once MTGS becomes its manager?
Once MTGS becomes the new site manager, there’s really no significant change for the owner. We do not make any changes to the site and we take over as the contractual counterparty of the mobile operator. MTGS will notify the tenants of the transaction and will be their day-to-day contact for the management of this infrastructure going forward.