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IndInfravit buys five road assets for $1.2 billion

IndInfravit Belief and BIF India Holdings Pte Ltd. and Kinetic Holdings 1 Pte Ltd., firms owned by funds managed by Brookfield Asset Administration Inc. executed definitive agreements whereby IndInfravit has agreed to buy the whole fairness shareholding of 5 operational highway initiatives from Brookfield. The transaction values the roads portfolio at an enterprise worth of roughly $1.2 billion. 

The roads portfolio contains three toll roads and two annuity roads, with about 2,400 lane kilometres in Andhra Pradesh, Bihar, Maharashtra and Uttar Pradesh. The roads portfolio has been operational, on a mean, for roughly 9 years, and have a mean residual concession interval of 20 years. 

IndInfravit at the moment holds a portfolio of 13 operational highway concessions with about 5,000 lane kilometres unfold throughout 5 states. This acquisition will broaden the portfolio into three further states, Andhra Pradesh, Bihar and Uttar Pradesh. IndInfravit’s unitholders embrace Allianz insurance coverage firms represented by Allianz Capital Companions, Canada Pension Plan Funding Board (CPP Investments) and OMERS Infrastructure. 

Pawan Kant, Chief Govt Officer, LTIDPL IndvIT Companies Restricted (Funding Supervisor to the IndInfravit Belief) stated, “This transaction is among the largest acquisitions within the highways sector in latest instances. It’s a testomony to the arrogance of long-term affected person capital within the India development story, duly represented by the highways sector. All of the 5 working belongings are a part of the Nationwide Highways program and in states contributing in complete round 30% of India’s GDP. With robust backing of its main unitholders, IndInfravit is properly positioned for India’s infrastructure monetisation plans. Getting into its fifth yr of operations, our InvIT presents itself as a longtime and dependable platform for builders and sponsors to divest their belongings, thus creating worth and producing important financial profit for each events.” The transaction is topic to sure regulatory and different customary situations, together with approval from related regulatory authorities, lenders and unitholders of IndInfravit. 

“We stay a dedicated supporter of IndInfravit – a portfolio that encompasses important and demanding roads belongings,” stated Scott Lawrence, Managing Director and Head of Infrastructure, CPP Investments. “This acquisition supplies development and geographic variety to the InvIT and can make sure the continued supply of high-quality infrastructure to totally different areas throughout India. Growing our pursuits in Indian infrastructure is a part of our ongoing dedication to ship strong long-term risk-adjusted returns to CPP contributors and beneficiaries.”

Delphine Voeltzel, Managing Director, Asia for OMERS Infrastructure, stated of the event: “We’re proud to help this additional development of the IndInfravit platform and stay up for working with our fellow unitholders, administration and native stakeholders to create further worth for the neighborhood and our clients. The acquisition additional strengthens IndInfravit’s place as a number one roads platform in India and considerably expands its roads portfolio in addition to its geographic footprint. It represents yet one more instance of how OMERS Infrastructure continues constructing a various portfolio of high-quality belongings in choose areas across the globe, led by robust administration groups, and in cooperation with like-minded, long-term companions.”


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