India’s largest infrastructure investment trust said on Friday it would acquire five operational road projects from companies owned by Canada’s Brookfield Asset Management’s funds in a deal valued at about $1.2 billion, including debt.
IndInfravit Trust seeks to expand its road portfolio and the deal will extend the trust’s presence into three more states, adding roads spread across 2,400 lane kilometres.
It currently has a portfolio of 13 operational road assets with about 5,000 lane km spread across five states.
IndInfravit’s unit holders include Allianz insurance companies represented by Allianz Capital Partners, Canada Pension Plan Investment Board and OMERS Infrastructure.
The road assets transaction is subject to approval from regulatory authorities, lenders and unitholders of IndInfravit.
Narendra Modi’s government is pouring money into infrastructure in the hope that stimulating the corporate sector will lead to private investment, manufacturing and jobs.
To boost growth, India is aggressively developing its transport infrastructure, including roads, railways and waterways.
- Reuters, with additional editing by George Russell
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