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Global investment firm KKR on Monday launched Highways Infrastructure Trust (HIT), a roads infrastructure investment trust (InvIT) in India.
HIT will be KKR’s third InvIT, in addition to the Virescent Renewable Energy that is India’s first renewable energy InvIT and India Grid Trust, a transmission InvIT.
Read also: Why you should accumulate the units of India Grid Trust InvIT
The platforms together operate and manage 33 assets valued at over $3.8 billion across 22 states and union territories across India.
HIT’s initial portfolio comprises six road assets over 450 kilometers across six states, including a diversified mix of toll and annuity roads, located in Gujarat, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu, and Telangana. India’s road network is responsible for 90 per cent of the total passenger traffic and the movement of almost 65 per cent of all goods across the country.
In addition, HIT is considering a pipeline of acquisition targets, including through its sponsor. The launch takes place on the back of growing demand to expand India’s road network, the second-largest globally, as passenger and commercial vehicle traffic continue to increase.
In India, KKR sees transportation, renewable energy, and electricity transmissions as core to its infrastructure strategy.
“HIT’s launch is a significant milestone for KKR’s India infrastructure strategy as we deepen our presence in the market. Highways and roads play a critical role in driving India’s economic prosperity and connecting its citizens, and we look forward to enabling further infrastructure creation and expansion as transportation demands continue to grow. With our dedicated platforms across transmissions, roads, and renewables in place, KKR is well-positioned to collaborate with sellers in the private markets and the government through the National Monetisation Pipeline on attractive investment opportunities.” said Hardik Shah, Partner at KKR.
Globally, KKR’s infrastructure portfolio spans a range of sectors, including transportation, renewable energy, power and utilities, water and wastewater, and telecommunications, among others, and manages more than $40 billion in assets.
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