+
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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

BMW Ventures Secures Rs 249.83 Million (mn) Steel Orders

BMW Ventures Limited said it has secured two purchase orders totalling Rs 249.83 million (mn) from Lata Projects Limited for the supply of TMT steel FE-550D grade for three units of 800 megawatt (MW) capacity at the USCTPP Adani project. The orders were disclosed to the stock exchanges under Regulation 30 of the SEBI Listing Regulations and carry a contract value inclusive of all taxes.\n\nThe company stated that the orders will be executed within eight weeks from the date of the purchase orders and that the contract provides for 100 per cent advance payment with specified guarantees. The supp..

Next Story
Real Estate

Housing Sales Dip in Top Eight Cities in Q2, Pune and Bengaluru Hit Hard

Housing sales across the top eight cities fell six point one per cent year-on-year to 91,729 units in the April-June quarter from 97,674 a year earlier, PropTiger’s Real Insight Residential report showed. The moderation reflected seasonal pre-monsoon effects and heightened buyer caution amid the US-Iran conflict. New launches rose six per cent to 89,161 units. The impact was concentrated in technology-driven markets, with Pune and Bengaluru among the hardest hit. Pune recorded the steepest annual decline at 20.8 per cent, with sales falling to 12,642 units, while Ahmedabad declined 20.2 per ..

Next Story
Infrastructure Urban

India And ADB Sign US$230 Million Loan To Modernise Chennai Water

The Government of India and the Asian Development Bank (ADB) signed a US$230 million loan to modernise and expand water supply and sanitation infrastructure in Chennai. Saurabh Singh, Deputy Secretary, Department of Economic Affairs (DEA), signed on behalf of the Government of India and Mio Oka, Country Director of ADB’s India Resident Mission, signed for the lender. The engagement was guided by Baldeo Purushartha, Joint Secretary (ADB and Japan), DEA. The Chennai Climate-Resilient Water Security and Sewerage Project aims to improve access to safe and reliable water and sanitation citywide w..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code