CPP Investments to Buy India Road Portfolio from Brookfield for Rs 9.3k Crore Deal

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RPC INVESTMENTS TO BUY BROOKFIELD

Canada Pension Plan Investment Board (CPP Investments), Canada’s largest pension fund manager, has agreed to buy a portfolio of Indian road products from Brookfield in a one million rupees ($1.2 billion), which is considered to be one of the largest road structure deals in the country.

Purchases will be made through IndInfravit Trust, InvIT run by CPP Investments. IndInfravit has reached an agreement with Brookfield’s investor – BIF India effects Pte Ltd and Kinetic effects Pte Ltd – to buy all shares of Brookfield’s five-way systems, it said in a press release on Friday.

Canadian asset manager Brookfield closes portfolio trade from India to Infravit Trust with trade value of Rs-crore, ET first reported on April 11. The agreement recognizes the equity of the five road means that Brookfield manages for the Colosseum. State-of-the-art structure for around Rs crore. The company also has debt of Rscrore, reports ET.

Omers and German insurer Allianz are among the main shareholders of the IndInfravit Trust and L&T structure development systems (L&T IDPL), acting as car guarantors. The portfolio comprises three at-risk routes and two periodic routes, of approximately km of lanes in Andhra Pradesh, Bihar, Maharashtra and Uttar Pradesh. The road portfolio has been in service approximately nine times with the remaining license period averaging 20 times.

IndInfravit currently has a road license portfolio of 13 lanes with approximately 5 km of roads in five companies. The membership will expand the portfolio to three new companies – Andhra Pradesh, Bihar and Uttar Pradesh. We continue to be a dedicated supporter of IndInfravit, a portfolio that incorporates valuable road assets,” said Scott Lawrence, Managing Director and Head of Structure, CPP Investments.

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This membership brings growth and diversity to InvIT and will ensure the continued delivery of a high quality structure in colorful parts of India,” said Delphine Voeltzel, Managing Director, Asia, Omers Structure. Growing our interests in the Indian structure of our continued commitment to deliver strong, long-term benefits tailored to threats to CPP claimants and heirs.

Andrew Cox, Co-Head of Structures, Allianz Capital mates, said: “Our investment in IndInfravit gives us the opportunity to be part of India’s fastest growing and dynamic structures sector. We look forward to working with our friends on an ongoing basis on a portfolio of high quality and well discerned ways.

Brookfield entered the road business in India in 2015 after Gammon NSE3.03 Structure Systems. It has also acquired road assets from Hyderabad-based KMC Constructions. Peak has returned two systems installed at Gammon – Andhra Expressway and Rajahmundry Expressway – to the National Highways Authority of India (NHAI) after managing them.

ET first announced on September 6 that Brookfield plans to sell Peak for $1.2 billion at trade value. KPMG is advising Brookfield on the commercialization process. Ambit, Cyril Amarcand Mangaldas advised IndInfravit.

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