IndInfravit Trust and BIF India Holdings and Kinetic Holdings 1, companies owned by funds managed by Brookfield Asset Management Inc. (Brookfield), has executed definitive agreements whereby Indinfravit has agreed to purchase the entire equity shareholding of five operational road projects (Roads Portfolio) from Brookfield. The transaction values the roads portfolio at an enterprise value of approximately $1.2 billion.
The transaction is subject to certain regulatory and other customary conditions, including approval from relevant regulatory authorities, lenders and unit holders of IndInfravit. The Roads Portfolio comprises three toll roads and two annuity roads, with approx. 2,400 lane kms in Andhra Pradesh, Bihar, Maharashtra and Uttar Pradesh. The roads portfolio has been operational, on an average, for approximately 9 years, and have an average residual concession period of 20 years.
Indinfravit currently holds a portfolio of thirteen operational road concessions with approximately 5,000 lane kms spread across five states. This acquisition will expand the portfolio into three additional states, Andhra Pradesh, Bihar and Uttar Pradesh. IndInfravit’s unit holders include Allianz insurance companies represented by Allianz Capital Partners, Canada Pension Plan Investment Board (“CPP Investments”) and OMERS Infrastructure.
IndInfravit Trust was set up by L&T Infrastructure Development Projects (L&T IDPL) (the Sponsor) as an irrevocable trust under the provisions of the Indian Trusts Act, 1882. The Investment objectives of IndInfravit Trust are to carry on the activities of, and to make investments, as an infrastructure investment trust, as permissible in terms of the applicable law.
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