NIIF in $380 mn road deal
Premium- NIIF Master Fund also holds the six-laned Devanahalli Tollway in Bengaluru and the four-laned Dichpally Tollway in Telangana. The fund is in various stages of acquiring a few other strategic road assets
MUMBAI : The National Investment and Infrastructure Fund (NIIF) on Monday said it has acquired Navayuga Quazigund Expressway Private Ltd. (NQEPL), an operational tunnel road in the union territory of Jammu and Kashmir, through the NIIF Master Fund at an enterprise value of around $380 million.
The tunnel road will be managed by NIIF Master Fund’s proprietary roads platform Athaang Infrastructure. This acquisition expands the fund’s road portfolio and diversifies its asset base, the investor said in a statement.
NQEPL is one of the largest annuity projects awarded by the National Highways Authority of India (NHAI) on a BOT (build-operate-transfer) basis. This project receives fixed, semi-annual payments from NHAI, providing stable and predictable cash flows, as per the statement.
“This acquisition emphasises our focus on identifying fundamentally strong assets that offer long-term value creation. Operations and maintenance (O & M) of this asset requires specialised technical and management expertise and is a testament to the strength of Athaang Infrastructure. Leveraging the team’s strong underwriting capabilities and a well-structured investment approach, we will continue to build the NIIF Master Fund road portfolio with an efficient selection of high-quality assets and superior O & M practices," said Vinod Giri, managing partner, NIIF Master Fund.
The four-laned 16.3 km expressway between Quazigund and Banihal Section of NH-1A, includes a bi-directional 8.5 km continuous twin-tube tunnel stretch, one of the longest highway tunnels in India. The road provides a vital link between the two important cities in the region, Jammu and Srinagar, enabling seamless movement of traffic and goods, with enhanced inter-region connectivity. The road facilitates traffic movement in all weather conditions throughout the year and reduces significant travel time between the two cities.
“India is home to the world’s second-largest road network. The growing number of passengers and vehicles along with the need to further deepen connectivity in the country has propelled demand to widen the nation’s road network. This has generated significant investment opportunities in strategic assets with strong fundamentals," added Giri.
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NIIF Master Fund also holds the six-laned Devanahalli Tollway in Bengaluru and the four-laned Dichpally Tollway in Telangana. The fund is in various stages of acquiring a few other strategic road assets. In addition to the road sector platform, NIIF Master Fund has also anchored platforms in ports and logistics, renewables, data centres, and energy smart meters sectors.
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