KKR-backed HIT in mega road acquisition
ROADS & HIGHWAYS

KKR-backed HIT in mega road acquisition

In a significant move, KKR-backed Highways Infrastructure Trust (HIT) is set to acquire 12 road projects from PNC Infratech and PNC Infra Holdings, marking one of the most substantial acquisitions in the road and highways sector. The enterprise value of this strategic transaction is estimated at Rs 9,005.7 crore.

The acquisition, subject to regulatory and customary conditions, including approvals from regulatory authorities and banks, involves a portfolio comprising 11 hybrid annuity concessions from the National Highways Authority of India (NHAI) and one toll road concession from the Uttar Pradesh State Highways Authority (UPSHA). The projects span approximately 3,800 lane kilometres across Rajasthan, Uttar Pradesh, Madhya Pradesh, and Karnataka.

Ten out of the 12 projects are currently operational, while the remaining two are under construction and will be acquired post their operational commencement. The hybrid annuity concessions involve NHAI contributing 40 per cent of the total project expenditure, with the developer arranging the rest.

Neeraj Sanghi, CEO of Highway Concessions One, the investment manager of the trust, expressed the significance of this transaction in the roads sector. He highlighted the commitment to growth and delivering value to unit holders through the acquisition of this substantial portfolio. Gaurav Chandna, Head of Strategic Finance at Highway Concessions One, emphasized the annuity nature of cash flows from the road portfolio, providing stability to the existing portfolio.

Chandna further stated, "This investment is in line with our thesis of acquiring assets with long balance concession life, generating predictable distributions for our unitholders. With this transaction and other signed (and announced) transactions, HIT?s assets under management are estimated to cross Rs 20,000 crore, marking a significant fourfold increase since the initial listing."

The acquisition aligns with HIT's strategic vision, emphasizing long-term value creation and stability, positioning the trust as a key player in the evolving landscape of the Indian road and highways sector.

In a significant move, KKR-backed Highways Infrastructure Trust (HIT) is set to acquire 12 road projects from PNC Infratech and PNC Infra Holdings, marking one of the most substantial acquisitions in the road and highways sector. The enterprise value of this strategic transaction is estimated at Rs 9,005.7 crore. The acquisition, subject to regulatory and customary conditions, including approvals from regulatory authorities and banks, involves a portfolio comprising 11 hybrid annuity concessions from the National Highways Authority of India (NHAI) and one toll road concession from the Uttar Pradesh State Highways Authority (UPSHA). The projects span approximately 3,800 lane kilometres across Rajasthan, Uttar Pradesh, Madhya Pradesh, and Karnataka. Ten out of the 12 projects are currently operational, while the remaining two are under construction and will be acquired post their operational commencement. The hybrid annuity concessions involve NHAI contributing 40 per cent of the total project expenditure, with the developer arranging the rest. Neeraj Sanghi, CEO of Highway Concessions One, the investment manager of the trust, expressed the significance of this transaction in the roads sector. He highlighted the commitment to growth and delivering value to unit holders through the acquisition of this substantial portfolio. Gaurav Chandna, Head of Strategic Finance at Highway Concessions One, emphasized the annuity nature of cash flows from the road portfolio, providing stability to the existing portfolio. Chandna further stated, This investment is in line with our thesis of acquiring assets with long balance concession life, generating predictable distributions for our unitholders. With this transaction and other signed (and announced) transactions, HIT?s assets under management are estimated to cross Rs 20,000 crore, marking a significant fourfold increase since the initial listing. The acquisition aligns with HIT's strategic vision, emphasizing long-term value creation and stability, positioning the trust as a key player in the evolving landscape of the Indian road and highways sector.

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