(Bloomberg) -- UK investment firm Wren House Infrastructure Management is buying a minority stake in Blackstone Group LP-backed US mobile tower operator Phoenix Tower International, as dealmaking in the digital infrastructure sector accelerates. 

The infrastructure investor, a division of sovereign wealth fund Kuwait Investment Authority, is acquiring a holding of about 10% that’s valued at more than $500 million, people familiar with the matter said, asking not to be identified discussing confidential terms.

Blackstone will continue to remain as majority shareholder in the business, according to a statement on Tuesday.  

“PTI is another major step for Wren House’s portfolio built-up in a priority market like the US, where Wren House intends to set up an office in the next few months,” Wren House Chief Executive Officer Philippe Busslinger, who joined the firm the last year, said in the statement. 

Founded in 2013, Phoenix operates over 19,000 towers across 20 countries in North America, South America, the Caribbean and Europe. The deal is the second transaction for Wren House in the US this year, following the acquisition of Direct ChassisLink in June.  

Institutional investors are being drawn to tower assets because of their ability to generate steady, long-term returns. Brookfield Asset Management Inc. and DigitalBridge Group Inc. acquired a 51% stake in Deutsche Telekom’s German and Austrian business in July, valuing the business at 17.5 billion euros ($17.3 billion). KKR & Co. and Global Infrastructure Partners are among private equity firms competing for a stake in Vodafone Group Plc’s wireless towers unit, Bloomberg News has reported. 

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