OMERS Infrastructure has acquired a 22.4 per cent stake in IndInfravit Trust sponsored by Larsen & Toubro’s subsidiary L&T Infrastructure Development Projects Limited (L&T IDPL), for ₹870 crore (C$160 million).

IndInfravit is an infrastructure investment trust listed via private placement in May last year. At the time of listing, Canada Pension Plan Investment Board (CPPIB) and Allianz Capital Partners (ACP) together acquired 55 per cent of units in the trust becoming its anchor investors.

IndInfravit has a portfolio of five operational toll road concessions granted by NHAI. The projects in Rajasthan, Karnataka, Tamil Nadu and Andhra Pradesh were initially constructed and operated by L&T IDPL.

While L&T’s subsidiary sponsored the InvIT, it is also acting as its Project Manager and its subsidiary is acting as the Investment Manager for IndInfravit.

“IndInfravit is a well-managed, world-class core infrastructure asset. This investment provides an attractive entry point into India, one of the most dynamic markets globally, alongside well-trusted partners,” said Bruce Crane, Managing Director, OMERS Infrastructure in Asia.

Ambit Private Limited acted as financial adviser to OMERS Infrastructure in this transaction.

“We look forward to working constructively with the other unit holders, management and all local stakeholders to grow this platform in the coming years,” he added. “The investment in IndInfravit marks not only our first infrastructure investment in India, but also demonstrates our commitment to investing in the Asia Pacific region following our office opening in Singapore in 2018,” said Ralph Berg, Executive Vice-President and Global Head of OMERS Infrastructure.

He added that OMERS Infrastructure, previously known as Borealis Infrastructure, the infrastructure investment advisory and management arm of OMERS, the Canadian-based pension plan for Ontario’s municipal employees, is keen to participate in the expansion of the Indian economy by investing into crucial infrastructure. OMERS has been reportedly considering acquiring some of the road assets of IL&FS.

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