The many contenders for Macquaire’s road assets

Bombay : KKR, Cube Highways and Canadian pension funds CPP Investments and CDPQ have expressed preliminary interest in a group of highway assets offered for sale by Macquarie Asset Management, which targets an enterprise value of 4,200 crore for roads, said two people familiar with the development.

The Australian asset manager’s infrastructure investment fund is working with investment bank JP Morgan to find buyers for these road assets, the people quoted above said.

“The portfolio offered for sale includes two South Indian routes wholly owned by Macquarie and two partially owned by it. Macquarie seeks an enterprise value of approximately 4,200 crore. Preliminary talks are ongoing,” said one of the two people quoted above, seeking anonymity as the talks are private.

“There is a strong demand for yield-generating assets such as roads from foreign investors. The Indian road sector is quite attractive for them given that the regulations are strong and new structures such as infrastructure investment trusts have worked well for road space investors. While CPPIB and Cube Highways have established great platforms to own and operate roads, investors such as KKR and CDPQ have only recently started building their portfolios and are looking to buy good road assets in India,” said added the person.

Emails sent to spokespersons for Macquarie and Cube Highways went unanswered. KKR, CPP Investments, CDPQ and JP Morgan declined to comment on Mint’s questions.

This isn’t the first road series that Macquarie wants to monetize. In December, KKR signed an agreement to acquire five toll roads from Ashoka Concessions for 1,337 crore, where Macquarie is a significant minority shareholder, to provide an exit for the investor.

Canadian asset manager Brookfield Asset Management is also monetizing its Indian roads portfolio.

Mint announced in January that Brookfield Asset Management was in talks with three investors to sell Peak Infrastructure, a portfolio of operating road assets owned by the Canadian investor, for an enterprise value of $1.2 billion to $1.5 billion. dollars.

“Macquarie, while seeking new investment opportunities as it raises its third Asian fund, is actively seeking to monetize its existing investments in India. These include roads and renewable resources,” said the second person quoted above.

As it continues to assess Indian infrastructure assets such as roads, green investments will form an important part of its investment thesis going forward, Macquarie Asset Management managing director Deep Gupta said in a statement. an interview in December.

The company is also interested in areas such as digital infrastructure, including data centers, telecommunications towers and fiber optic infrastructure, Gupta said in an interview.

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Comments are closed.