Brookfield plans to sell Peak Infrastructure at $1.2 billion
ROADS & HIGHWAYS

Brookfield plans to sell Peak Infrastructure at $1.2 billion

Brookfield Asset Management is looking to cash out six years after establishing a platform for its toll road assets. According to people familiar with the situation, the Canadian asset manager plans to sell Peak Infrastructure for $1.2 billion inclusive of debt to profit from the current valuation uptick in similar assets. Peak Infrastructure has five road assets under its control.

Brookfield's management has begun talks with several investment bankers, and a formal mandate will be issued within the next week. According to the sources, the formal sale process will begin in the middle of October. Brookfield Asset Management is one of the largest asset managers in the world.

In April and May, the second wave of the Covid pandemic wreaked havoc on toll collections. According to ICRA's calculations, tolls dropped by about 10% in April and nearly 30% in May. Traffic on highways improved, reaching 90% of pre-Covid levels and surpassing it in subsequent months. As a result, the government has chosen the National Highways Authority of India (NHAI) to lead the government's recently announced asset monetisation initiative.

Over the next two years, it plans to raise Rs 30,000 to 40,000 crore by selling and leasing back operational stretches.

The Mumbai Nashik Expressway, Simhapuri Expressway, Rayalseema Expressway, Gorakhpur Infrastructure Co., and Kosi Bridge Infrastructure Co. are among Peak Infrastructure's toll roads that are under long-term concession agreements with NHAI. Peak was formed following the purchase of road assets from Gammon India.

Brookfield made its first foray into the road business in August 2015, when it purchased six projects from Gammon. It bought two road assets from Hyderabad-based KMC Constructions after two years.

Brookfield attempted to sell its flagship road asset, the 150 km Mumbai-Nashik Expressway, in 2019. It held talks with a number of companies, including Cube Highways and IRB Infrastructure, but no agreement was reached.

Brookfield, which first entered India in 2014, has invested roughly $20 billion in the country to date. During the 2018-20 period, half of the money was spent on infrastructure. A Rs 25,215 crore investment in Jio Towers and a Rs 13,000 crore buyout of EastWest Pipeline are among its major infrastructure investments formerly Reliance Gas Transportation Infrastructure.

Image Source


Also read: Brookfield buys 30 acre land parcel from K Raheja Corp in Mumbai

Also read: Brookfield Asset Management raises $7 bn for global transition fund

Brookfield Asset Management is looking to cash out six years after establishing a platform for its toll road assets. According to people familiar with the situation, the Canadian asset manager plans to sell Peak Infrastructure for $1.2 billion inclusive of debt to profit from the current valuation uptick in similar assets. Peak Infrastructure has five road assets under its control. Brookfield's management has begun talks with several investment bankers, and a formal mandate will be issued within the next week. According to the sources, the formal sale process will begin in the middle of October. Brookfield Asset Management is one of the largest asset managers in the world. In April and May, the second wave of the Covid pandemic wreaked havoc on toll collections. According to ICRA's calculations, tolls dropped by about 10% in April and nearly 30% in May. Traffic on highways improved, reaching 90% of pre-Covid levels and surpassing it in subsequent months. As a result, the government has chosen the National Highways Authority of India (NHAI) to lead the government's recently announced asset monetisation initiative. Over the next two years, it plans to raise Rs 30,000 to 40,000 crore by selling and leasing back operational stretches. The Mumbai Nashik Expressway, Simhapuri Expressway, Rayalseema Expressway, Gorakhpur Infrastructure Co., and Kosi Bridge Infrastructure Co. are among Peak Infrastructure's toll roads that are under long-term concession agreements with NHAI. Peak was formed following the purchase of road assets from Gammon India. Brookfield made its first foray into the road business in August 2015, when it purchased six projects from Gammon. It bought two road assets from Hyderabad-based KMC Constructions after two years. Brookfield attempted to sell its flagship road asset, the 150 km Mumbai-Nashik Expressway, in 2019. It held talks with a number of companies, including Cube Highways and IRB Infrastructure, but no agreement was reached. Brookfield, which first entered India in 2014, has invested roughly $20 billion in the country to date. During the 2018-20 period, half of the money was spent on infrastructure. A Rs 25,215 crore investment in Jio Towers and a Rs 13,000 crore buyout of EastWest Pipeline are among its major infrastructure investments formerly Reliance Gas Transportation Infrastructure. Image Source Also read: Brookfield buys 30 acre land parcel from K Raheja Corp in Mumbai Also read: Brookfield Asset Management raises $7 bn for global transition fund

Next Story
Real Estate

Our panels build faster and cost less than traditional methods

In the race to build faster and taller, the construction industry often leaves a heavy environmental footprint. But what if we could build with speed, efficiency, and sustainability? Sangeetha Menon, Founder and CEO, Hedrad, an NSRCEL-incubated venture pioneering lightweight composite panels in India, discusses her journey of innovation, unique marketing strategy and vision for a greener future in construction with CW.What inspired the name Hedrad and what does it represent in terms of your brand’s values?The name stems from the core of our panels, which use a honeycomb design base..

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?