NIIF Transfers Rs 41.9 Billion Road Assets to Cube InvIT
ROADS & HIGHWAYS

NIIF Transfers Rs 41.9 Billion Road Assets to Cube InvIT

The National Investment and Infrastructure Fund (NIIF) has successfully transferred ownership of two operational annuity-based road projects to Cube Highways Trust (Cube InvIT), managed by Cube Highways Fund Advisors Pvt. Ltd. The deal marks a strategic shift of approximately Rs 41.9 billion (including cash), subject to final closing adjustments, further strengthening Cube InvIT’s high-quality infrastructure portfolio.

The two road assets—Quazigund Expressway Pvt. Ltd. (QB) and Athaang Jammu Udhampur Highway Pvt. Ltd. (JU)—cover nearly 80 kilometres in Jammu and Kashmir. QB includes one of India’s longest bi-directional tunnels, while JU serves as a critical arterial route connecting Jammu and Srinagar.

These projects are backed by fixed semi-annual annuity payments from the National Highways Authority of India (NHAI), offering predictable, traffic-insulated revenue for over six more years. Cube InvIT expects the transaction to enhance its net distributable cash flows by approximately Rs 2.3 per unit annually over the next five years.

Vinay C. Sekar, CEO of Cube InvIT, noted that this acquisition adds high-quality annuity assets to their pan-India portfolio, aligning with their strategy of acquiring de-risked, stable cash-flow projects. Post-transaction, annuity-based revenue will comprise 33 per cent of Cube InvIT’s total income.

Pankaj Vasani, Group CFO of Cube InvIT, highlighted that the Trust maintains a strong financial position with a Net Debt to AUM ratio of around 49 per cent and a AAA credit rating from CRISIL, ICRA, and India Ratings, enabling further value-accretive growth.

Vinod Giri, Managing Partner at NIIF, stated that the transaction reflects NIIF’s strategy of acquiring and de-risking large infrastructure assets through its roads platform Athaang, improving their credit profiles and delivering attractive returns to institutional investors.

This deal exemplifies growing confidence in India’s infrastructure investment landscape, showcasing effective collaboration between sovereign-backed funds and private institutional platforms.

The National Investment and Infrastructure Fund (NIIF) has successfully transferred ownership of two operational annuity-based road projects to Cube Highways Trust (Cube InvIT), managed by Cube Highways Fund Advisors Pvt. Ltd. The deal marks a strategic shift of approximately Rs 41.9 billion (including cash), subject to final closing adjustments, further strengthening Cube InvIT’s high-quality infrastructure portfolio.The two road assets—Quazigund Expressway Pvt. Ltd. (QB) and Athaang Jammu Udhampur Highway Pvt. Ltd. (JU)—cover nearly 80 kilometres in Jammu and Kashmir. QB includes one of India’s longest bi-directional tunnels, while JU serves as a critical arterial route connecting Jammu and Srinagar.These projects are backed by fixed semi-annual annuity payments from the National Highways Authority of India (NHAI), offering predictable, traffic-insulated revenue for over six more years. Cube InvIT expects the transaction to enhance its net distributable cash flows by approximately Rs 2.3 per unit annually over the next five years.Vinay C. Sekar, CEO of Cube InvIT, noted that this acquisition adds high-quality annuity assets to their pan-India portfolio, aligning with their strategy of acquiring de-risked, stable cash-flow projects. Post-transaction, annuity-based revenue will comprise 33 per cent of Cube InvIT’s total income.Pankaj Vasani, Group CFO of Cube InvIT, highlighted that the Trust maintains a strong financial position with a Net Debt to AUM ratio of around 49 per cent and a AAA credit rating from CRISIL, ICRA, and India Ratings, enabling further value-accretive growth.Vinod Giri, Managing Partner at NIIF, stated that the transaction reflects NIIF’s strategy of acquiring and de-risking large infrastructure assets through its roads platform Athaang, improving their credit profiles and delivering attractive returns to institutional investors.This deal exemplifies growing confidence in India’s infrastructure investment landscape, showcasing effective collaboration between sovereign-backed funds and private institutional platforms.

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