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CPP Investments buys Brookfield India road portfolio for Rs 9,375 cr
Real Estate

CPP Investments buys Brookfield India road portfolio for Rs 9,375 cr

The largest pension money manager in Canada, Canada Pension Plan Investment Board (CPP Investments), has agreed to buy a portfolio of Indian road assets from Canadian asset manager Brookfield in a deal valued at about Rs 9,375 crore.

An infrastructure investment trust (InvIT) led by Canada Pension Plan Investment Board, IndInfravit Trust, has entered into a contract with investment holdings of Brookfield- BIF India Holdings Pte Ltd and Kinetic Holdings 1 Pte Ltd to purchase the entire equity shareholding of five operational road projects from Brookfield on Friday.

Brookfield is finalising its road portfolio sale in India to IndInfravit Trust for an enterprise valuation of around Rs 9,000-Rs 9,500 crores.

The transaction values the equity of the five operational road assets that Brookfield owns via platform Peak Infrastructure at about Rs 6,000 crore. The company also has a debt of Rs 3,000-3,200 crore debt.

Allianz, Omers, and German insurer, are the other key shareholders of the IndInfravit Trust, along with L&T Infrastructure Development Projects (L&T IDPL), which also functions as a vehicle sponsor.

The Roads Portfolio includes three toll roads and two annuity roads, with about 2,400 km lanes in Bihar, Maharashtra, Andhra Pradesh, and Uttar Pradesh. The Roads Portfolio has been functional, on an average, for around nine years, and has an average residual concession duration of 20 years, as per the statement.

IndInfravit presently holds a portfolio of 13 operational road concessions with about 5,000 km of lanes spread across five states. This acquisition will grow the portfolio into three additional states, Bihar, Andhra Pradesh, and Uttar Pradesh.

Growing interest in Indian infrastructure is part of the ongoing commitment to providing solid long-term risk-adjusted returns to CPP contributors and beneficiaries, said Scott Lawrence.

Co-Head - Infrastructure for Allianz Capital Partners, Andrew Cox, said the company investment in IndInfravit permits us to be part of the vibrant and highly important infrastructure sector in India. The company looks forward to performing together with our partners on the further development of the IndInfravit platform producing high quality, well-diversified asset portfolio.

Image Source

Also read: CPPIB to invest Rs 2,650 cr in joint venture with RMZ Corp

The largest pension money manager in Canada, Canada Pension Plan Investment Board (CPP Investments), has agreed to buy a portfolio of Indian road assets from Canadian asset manager Brookfield in a deal valued at about Rs 9,375 crore. An infrastructure investment trust (InvIT) led by Canada Pension Plan Investment Board, IndInfravit Trust, has entered into a contract with investment holdings of Brookfield- BIF India Holdings Pte Ltd and Kinetic Holdings 1 Pte Ltd to purchase the entire equity shareholding of five operational road projects from Brookfield on Friday. Brookfield is finalising its road portfolio sale in India to IndInfravit Trust for an enterprise valuation of around Rs 9,000-Rs 9,500 crores. The transaction values the equity of the five operational road assets that Brookfield owns via platform Peak Infrastructure at about Rs 6,000 crore. The company also has a debt of Rs 3,000-3,200 crore debt. Allianz, Omers, and German insurer, are the other key shareholders of the IndInfravit Trust, along with L&T Infrastructure Development Projects (L&T IDPL), which also functions as a vehicle sponsor. The Roads Portfolio includes three toll roads and two annuity roads, with about 2,400 km lanes in Bihar, Maharashtra, Andhra Pradesh, and Uttar Pradesh. The Roads Portfolio has been functional, on an average, for around nine years, and has an average residual concession duration of 20 years, as per the statement. IndInfravit presently holds a portfolio of 13 operational road concessions with about 5,000 km of lanes spread across five states. This acquisition will grow the portfolio into three additional states, Bihar, Andhra Pradesh, and Uttar Pradesh. Growing interest in Indian infrastructure is part of the ongoing commitment to providing solid long-term risk-adjusted returns to CPP contributors and beneficiaries, said Scott Lawrence. Co-Head - Infrastructure for Allianz Capital Partners, Andrew Cox, said the company investment in IndInfravit permits us to be part of the vibrant and highly important infrastructure sector in India. The company looks forward to performing together with our partners on the further development of the IndInfravit platform producing high quality, well-diversified asset portfolio. Image Source Also read: CPPIB to invest Rs 2,650 cr in joint venture with RMZ Corp

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