The Highway Infrastructure Trust (HIT) has finalised definitive agreements with PNC Infratech Ltd and PNC Infra Holdings Ltd for the acquisition of 12 road projects, marking a major stride in the infrastructure sector. The enterprise value of this strategic move stands at Rs 9,005.7 crore, signaling a robust commitment to enhancing the nation’s highway network.
Details of the project
According to a statement from Highway Infrastructure Trust, the targeted portfolio includes 11 Hybrid Annuity (HAM) concessions from the National Highways Authority of India (NHAI) and 1 toll road concession from the Uttar Pradesh State Highways Authority (UPSHA), spanning approximately 3,800 lane kilometers across Rajasthan, Uttar Pradesh, Madhya Pradesh, and Karnataka.
Of the 12 projects, 10 are presently operational, while the remaining 2 are under construction and slated for acquisition post the commencement of operations, as outlined by the trust.
Neeraj Sanghi, Chief Executive Officer of Highway Concessions One, the investment manager to HIT, expressed enthusiasm about the integration of these assets into their portfolio. “We look forward to integrating these assets into our portfolio and to continue our journey of high-quality asset management backed by world class ESG standards,” said Neeraj.
Gaurav Chandna, Head of Strategic Finance at Highway Concessions One, highlighted the magnitude of this transaction, declaring it as one of the largest acquisitions in the highways sector.
Moreover, he indicated that, with this transaction and other previously signed and announced deals, HIT’s assets under management are estimated to surpass Rs 20,000 crore, underscoring the trust’s growing influence in the infrastructure investment landscape.
Its investment manager is Highway Concessions One Private Ltd and its sponsor is Galaxy Investments II Pte Ltd, an entity affiliated with funds, vehicles and/or accounts managed and/or advised by affiliates of KKR & Co Inc.