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KKR to acquire GIP’s stake in Highway Concessions One

Our Bureau Mumbai | Updated on July 05, 2021

Through the acquisition, KKR aims to play a part in India’s transport infrastructure

KKR will acquire Global Infrastructure Partners’ stake in Highway Concessions One (HC1) and seven highway assets with a total length of 487 kilometres.

HC1 is a platform in India that manages GIP’s road portfolio which spans across seven states including Gujarat, Karnataka, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu, and Telangana.

"Through the acquisition of GIP’s interest in HC1, KKR aims to help strengthen and expand India’s national highway network, which serves about 40 per cent of total traffic but accounts for only 2 per cent of the country’s road network. This latest infrastructure investment is also in line with the government’s focus on improving connectivity between cities, with the National Highways Authority of India planning to build 60,000 kilometres of highway in the next five years," KKR said in a press release.

KKR made its investment from the KKR Asia Pacific Infrastructure Fund. The investment represents KKR’s third investment in India from the Fund and the firm’s first investment in Asia’s transport sector.

Recent infrastructure investments in India include India Grid Trust (IndiGrid), a leading infrastructure investment trust in India, and Virescent Infrastructure, a renewable energy company in India.

Hardik Shah, Managing Director and Head of India Infrastructure at KKR, said, “Roads are one of the largest and most crucial infrastructure assets in India, where the world’s second-largest road network is located. Rapidly increasing passenger and commercial vehicle traffic has driven the strong demand to expand the country’s road network even further and the reciprocal need for investment in the sector. This is why the transportation sector is a key area of our infrastructure strategy in India. We are truly excited to invest in a high-quality platform and through HC1 play a part in India’s transport infrastructure.”

Published on July 05, 2021

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