A new bidding group has emerged in the upcoming contest to buy the bulk of a $2 billion Australian telecoms towers portfolio from Singtel Optus Pty Limited, comprising a private equity firm, a pension fund and a sovereign wealth fund. KKR & Co. Inc. (NYSE:KKR)  is understood to have linked up with the QIC Limited and Ontario Teachers' Pension Plan Board, which is considered a serious player when it comes to auctions for major infrastructure assets in Australia.

DataRoom understands that investment bank Citi is working with the consortium. Parties are lining up to buy the towers, which are expected to come up for sale shortly through Bank of America as the Temasek-backed Singtel looks to sell down its Optus towers to help fund the roll out of its 5G network. The Crown Castle business Axicom, owned by Macquarie Infrastructure and Real Assets, is also believed to be interested and is working with Credit Suisse and Macquarie Capital, while Morrison & Co and the Future Fund are being advised by UBS.

Lendlease Group (ASX:LLC) is also understood to be lining up with help from adviser Morgan Stanley.