Indinfravit closes acquisition of Rs 8,270 cr roads from Brookfield

IndInfravit, the infrastructure investment trust (InvIT) set up by Larsen & Toubro, on Friday said it had completed the acquisition of four operational road projects managed by Brookfield Asset Management in an all-cash transaction valued at Rs. 8,270 crore.

The agreement with Brookfield, first announced on June 10, was for the acquisition of five road assets, four of which are Simhapuri Expressway, Rayalseema Expressway, Mumbai-Nashik Expressway, and Kosi Bridge.

The acquisition of the fifth road project — Gorakhpur Infrastructure Company Private Limited — is pending the receipt of requisite regulatory approvals and fulfilment of certain other conditions set out under the definitive documents, the company told the exchanges.

Following the acquisition, the InvIT comprises projects with 7,300 lane kilometres (km) across eight states. The trust is backed by the Canada Pension Plan Investment Board (CPP Investments), Ontario Municipal Employees Retirement System (OMERS Infrastructure), and Allianz Capital Partners.

According to CPP Investments, the roads portfolio comprises three toll roads and two annuity roads, with approximately 2,300-lane km in Andhra Pradesh, Bihar, Maharashtra, and Uttar Pradesh. The roads have been operational, on an average, for approximately nine years, and have an average residual concession period of 20 years.