Companies owned by IndInfravit Trust and BIF India Holdings Pte Ltd and Kinetic Holdings 1 Pte Ltd, the funds managed by Brookfield Asset Management Inc., entered into definitive agreements whereby IndInfravit agrees to purchase the entire equity stake of five operational road projects from Brookfield Gone. The transaction values the Streets portfolio at an enterprise value of approximately $1.2 billion.
The road portfolio consists of three toll roads and two annuity roads with about 2,400 lane kilometers in Andhra Pradesh, Bihar, Maharashtra and Uttar Pradesh. The roads portfolio has been in operation for an average of about nine years, and has an average residual concession period of 20 years.
IndInfravit currently maintains a portfolio of thirteen operational road concessionaires with approximately 5,000 lane kilometers spread across five states. This acquisition will expand the portfolio to three additional states, Andhra Pradesh, Bihar and Uttar Pradesh. Unitholders of IndInfravit include Allianz Capital Partners, Canada Pension Plan Investment Board (CPP Investments) and Allianz Insurance companies represented by OMERS Infrastructure.
Pawan Kant, Chief Executive Officer, LTIDPL IndvIT Services Limited (Investment Manager, IndInfravit Trust) said, “This transaction is one of the biggest acquisitions in the highways sector in recent times. It is a testament to the long-term patient capital’s belief in India’s growth story, which is duly represented by the highways sector. All five operating assets are part of the National Highways Program and the states contribute about 30% of India’s GDP. With strong support from its major unitholders, IndInfravit is well positioned for India’s infrastructure monetization plans. Stepping into its fifth year of operations, our InvIT presents itself as an established and trusted platform for developers and sponsors to sell their assets, thus creating value and significant economic benefits for both parties. The transaction is subject to certain regulatory and other customary conditions, including approvals from relevant regulatory authorities, lenders and unitholders of IndInfravit.
Scott Lawrence, Managing Director and Head of Infrastructure, CPP Investments, said, “We remain a committed supporter of IndInfravit – a portfolio that includes critical and important roads assets.” “This acquisition provides InvIT with growth and geographic diversity and will ensure continuous delivery of high quality infrastructure across various regions across India. Growing our interests in Indian infrastructure is part of our continued commitment to deliver solid long-term risk-adjusted returns to CPP contributors and beneficiaries.”
Delphine Voeltzel, Asia Managing Director for OMERS Infrastructure, said of the development: “We are proud to support this further development of the IndInfravit platform and work with our fellow unitholders, management and local stakeholders to create added value to the community. Look forward to working with you and our customers. This acquisition further cements IndInfravit’s position as a leading road platform in India and significantly expands its roads portfolio as well as its geographic footprint. It offers yet another example of how OMERS Infrastructure continues to build a diverse portfolio of high-quality properties in select locations around the world, led by strong management teams, and in collaboration with like-minded, long-term partners. Is. “
“We are delighted to support the further growth of the IndInfravit platform and its continued path of excellence. Our investment in IndInfravit gives us the opportunity to be a part of the vibrant and highly critical infrastructure sector in India. We look forward to working jointly with our partners on the further development of the IndInfravit platform forming a diversified asset portfolio,” said Andrew Cox, Co-Head – Infrastructure for Allianz Capital Partners.
Cyril Amarchand Mangaldas worked as a legal advisor to IndInfravit.