Tenants FAQ

TIP’s business model is based on investing in mobile site leases exactly “as we find them.” In other words, the agreement already made between the tenant (an operator or tower company) and the site owner is good enough for us. We are clear about our role: we are not a tower company. Tower companies try to maximise co-location (site sharing) and push rents higher. Their investments in physical infrastructure, such as towers, are similar to equity investments, where returns depend on future “upside.” By contrast, TIP’s investments in mobile site leases are more akin to bond investments: just like our tenants, we seek long-term, predictable, “bond-like” cash flows.

Portfolio theory. Most mobile site leases can be terminated by the tenant with little notice, which leaves site owners with what we call “binary risk”: either the site exists (“1”) or it doesn’t (“0”). This is why site owners cannot simply go to a local bank and borrow money against their mobile site rent. By contrast, TIP manages portfolio risk: if one of our sites is terminated (which does happen), we have hundreds – and soon thousands – of other sites to balance and hedge that exposure.

TIP is ready to enter into long-term agreements with our tenants – up to the full length of our investment term (typically 30 years in the case of a usufruct). In these agreements, we are willing to renew the site rent under the same terms and conditions as those outlined in the existing site lease. And how can you be sure we keep our word? By contracting with us. We are prepared to sign agreements on a site-by-site basis or under master lease arrangements (MLAs).

As noted, site owners face “binary risk”: either their site exists or it doesn’t. TIP, by contrast, faces portfolio risk. We hold a global portfolio of high-quality, strategic sites that our tenants depend on. Due to this scale and diversification, our cost of capital is low, which enables us to pay substantial lump sums to site owners. Banks would never lend comparable amounts against terminable site leases, but TIP can.

Our payouts are also non-recourse: if a tenant terminates the lease after our investment, we do not recover the funds. This means the site owner has safely monetised their lease and can reinvest the proceeds, often at attractive rates of return. They might, for example, reinvest in a successful business or acquire real estate, combining our payout with low-rate mortgage financing.

In short, our model benefits both sides. By leveraging the distinct risk profiles of site owners and TIP, we create a genuine win-win. In principle, the optimal outcome is for most site owners to sell their sites.

Many mobile site owners prefer to be paid upfront rather than on a regular basis. Approximately 25,000 owners worldwide have already accepted lease pre-payments (also known as lease premiums). For tenants – operators and tower companies alike – lease premiums can be a powerful tool. Here’s why they are valuable:

1. Maximise control

A lease premium encourages landlords to accept necessary lease modifications, such as “expansion of use” or “expansion of premises.” This gives tenants the flexibility to roll out new technologies (including 5G) without having to renegotiate. Working with TIP also protects tenants against third-party aggregators whose models rely on renegotiation “upside”.

2. Maximise speed and efficiency

With TIP, tenants can implement roll-outs smoothly, without delays from repeated negotiations. TIP acts as a single, experienced point of contact across hundreds of sites. Our contracts support value-added services, including wholesale access, edge computing, fibre front- and backhaul, and data intelligence. We also provide flexibility for optimising passive infrastructure, even beyond the tenant’s existing footprint.

3. Reduce CapEx

Lease premiums are costly. The global average is approximately €80,000 – meaning that 1,000 deals require approximately €80 million. Most tenants prefer to use their capital on the core business rather than land. That’s why working with TIP is attractive: we provide the capital, tenants keep their equity-like investments, and long-term contracts with TIP ensure security and control.

4. Reduce OpEx

In the UK, the Electronic Communications Code (ECC) was introduced to enhance coverage and facilitate 5G upgrades. Tenants have used their “Code powers” to reduce rents, but this has often led to conflict with landlords. TIP can break the deadlock: owners are more likely to accept a fair lease premium than a reduced ongoing rent. This creates a win-win solution, avoiding costly legal disputes and speeding up deployment. The same principle applies internationally – TIP can act as a neutral investor to help owners and tenants reach a mutually beneficial agreement.

Our founder, Eric Overman, has overseen more than 75% of all lease premiums paid outside the United States, encompassing approximately 6,000 leases across 20 countries. Today, TIP is backed by InfraBridge, which has committed up to US$350 million in equity. This level of funding, far greater than what Mr. Overman had access to in his previous venture, together with future low-cost debt, enables TIP to deliver tenant-sponsored lease premium and sale-leaseback programs of any size, anywhere in the world.