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Edelweiss Alternatives managed Infrastructure Yield Plus has signed definitive agreements with Larsen & Toubro and Canada Pension Plan Investment Board to acquire the entire equity stake in L&T Infrastructure Development Projects for an enterprise value of ₹6,000 crore.
The portfolio comprises eight roads and one power transmission asset in India spanning 4,900 lane-km and 960 circuit km respectively. The transaction is subject to regulatory and other approvals.
Following this acquisition, the infrastructure platform will scale up to 26 assets with cumulative annual revenue of nearly ₹2,700 crore. The platform will be a diverse mix of power transmission and substations, renewables and highway assets spread geographically.
Infrastructure asset management
This acquisition is in line with the infrastructure yield strategy to generate regular distributions for investors by acquiring quality operating infrastructure assets with strong cash flows and unlocking value through active asset management.
Sreekumar Chatra, Managing Director, Infrastructure Yield Strategy said the acquired assets are geographically dispersed and have long residual life, which is consistent with investment strategy.
“We believe our asset management and operating capabilities, together with that of L&T IDPL, will help scale up this platform,” he said.
Subahoo Chordia, Head - Infrastructure Funds, Edelweiss Alternatives said asset monetisation and recycling capital holds the key to value creation and development in infrastructure.
On completion of this acquisition, there will be a high-quality diversified infrastructure portfolio of 26 assets across 13 states, making the company a leading infrastructure investor in India, he said.
Edelweiss Alternatives has ₹9,500 crore of infrastructure assets under its domain. It focusses on investing in infrastructure sectors such as power transmission, renewable power, and highways among others. It is among the largest yield focused infrastructure strategy in India with capital commitments from both domestic and global investors.
With a track record of over a decade, it has grown to be one of the largest Alternatives platforms in India with an asset under management of $5.5 billion (over ₹44,000 crore).
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