Cube Highways InvIT buys two road assets at enterprise value of Rs 4,184 cr

Both the assets are annuity-based and located in Jammu and Kashmir

Cube Highways infrastructure investment trust (InvIT) signed share purchase agreements (SPA) with the National Investment and Infrastructure Fund Limited (NIIF) to acquire two road assets at an enterprise value of Rs 4,184 crore. 

 

The agreement was signed on Friday to acquire 100 per cent stake in Quazigund Expressway Private Limited and Athaang Jammu Udhampur Highway Private Limited. Both the assets are based on an annuity model.

 

The proposed acquisition will optimally complement the existing portfolio of assets of Cube InvIT and will fit in with its strategy of deploying its debt capacity to acquire high-quality assets, InvIT said in a stock exchange filing on Saturday.

 

The all-cash deal is subject to all other closing adjustments as specified in the SPA, the satisfaction of customary conditions precedent and closing conditions, including receipt of statutory clearances as agreed upon in the definitive documentation signed amongst the parties.

 

Presently, regulatory approvals from the National Highways Authority of India (NHAI) and the Competition Commission of India (CCI) are expected to be required, InvIT said.

 

Further, InvIT's portfolio size post finalisation of its current pipeline will comprise 27 diverse assets located across India.

 

Additionally, Quazigund Expressway and Athaang Jammu Udhampur Highway cumulatively span around 80 kilometres. Both assets are fully operational availability-based concessions with an outstanding life of approximately six and a half years. 

 

Quazigund Expressway is one of the longest bi-directional tunnels in India, while Athaang Jammu Udhampur Highway is an essential link between Jammu and Srinagar. The assets were incorporated in 2010 with a concession period of 20 years.