Infrastructure firms deleverage balance sheets through sale of road assets
ROADS & HIGHWAYS

Infrastructure firms deleverage balance sheets through sale of road assets

There is, reportedly, a recent trend following infrastructure construction firms as most of them are taking steps to monetise their road assets. 

The move highlights two primary facts, first, the ability of firms to deleverage and gain value arising from the sale and second, the investors’ interest towards the road assets. 

As reported, Singapore’s Cube Highways and Infrastructure took control of five hybrid annuity model (HAM) road projects that are under-construction through an agreement signed with Dilip Buildcon, which detailed the sale of 100 per cent stake in the projects. Additionally, in a separate agreement the construction company also recently sold its road projects to Mumbai based Shrem Group.  KNR Constructions too, entered into a share purchase agreement with Cube Highways for three of its road assets. 

In terms of financial stress faced by these infrastructure companies, the step is seen as a means of significantly reducing the same.  The sale of stakes releases all funds locked into the project and allows for it to be incorporated into future bids or as growth capital.  Asset monetisation is, therefore, a comparatively reliable means towards achieving stable growth. 

There is, reportedly, a recent trend following infrastructure construction firms as most of them are taking steps to monetise their road assets. The move highlights two primary facts, first, the ability of firms to deleverage and gain value arising from the sale and second, the investors’ interest towards the road assets. As reported, Singapore’s Cube Highways and Infrastructure took control of five hybrid annuity model (HAM) road projects that are under-construction through an agreement signed with Dilip Buildcon, which detailed the sale of 100 per cent stake in the projects. Additionally, in a separate agreement the construction company also recently sold its road projects to Mumbai based Shrem Group.  KNR Constructions too, entered into a share purchase agreement with Cube Highways for three of its road assets. In terms of financial stress faced by these infrastructure companies, the step is seen as a means of significantly reducing the same.  The sale of stakes releases all funds locked into the project and allows for it to be incorporated into future bids or as growth capital.  Asset monetisation is, therefore, a comparatively reliable means towards achieving stable growth. 

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code