IndInfravit Trust has agreed to purchase the entire equity shareholding of five operational road projects from Brookfield Asset Management Inc. at an enterprise value of $1.2 billion.
The roads portfolio comprises three toll roads and two annuity roads, with approximately 2,400 lane km in Andhra Pradesh, Bihar, Maharashtra and Uttar Pradesh. The roads portfolio has been operational, on an average, for approximately nine years and have an average residual concession period of 20 years.
IndInfravit currently holds a portfolio of 13 operational road concessions with approximately 5,000 lane km spread across five States. This acquisition will expand the portfolio into three additional States — Andhra Pradesh, Bihar and Uttar Pradesh. IndInfravit’s unit holders include Allianz insurance companies represented by Allianz Capital Partners, Canada Pension Plan Investment Board and OMERS Infrastructure.
“This is one of the largest acquisitions in the highways sector in recent times. It is a testament to the confidence of long-term patient capital in the India growth story, duly represented by the highways sector. All the five operating assets are part of the National Highways programme and in States contributing 30 per cent of India’s GDP. With strong backing of its major unit holders, IndInfravit is well-positioned for infrastructure monetisation plans,” said Pawan Kant, Chief Executive Officer, LTIDPL IndvIT Services Limited (Investment Manager to the IndInfravit Trust).