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T&T has secured $850 million through the sale-leaseback of underutilized central office facilities to Reign Capital, a real estate development firm. The telecom giant plans to exit most of its copper network operations by 2029 as customers switch to faster and more reliable technologies like fiber optics and wireless networks.
In a sale-leaseback deal, AT&T sold part of its assets to raise capital and will lease back only the space needed for its network operations. This financing option allows companies to unlock value in underused properties. "This deal unlocks value in otherwise stranded commercial real estate," said Michael Ford, head of global real estate at AT&T.
The transaction involves 74 properties across the US and has no impact on jobs or services. It affects a small portion of AT&T's central office portfolio and was completed in early January.
