I Squared platform acquires India toll road assets
Cube Highways and Infrastructure, the India toll road and transportation investment platform of I Squared Capital, has agreed to acquire two toll road assets owned by Indian infrastructure developer KNR Constructions for INR1.9 billion ($26.7 million).
Cube will pay INR365 million and INR1.5 billion for highway projects in Tamil Nadu and Andhra Pradesh, respectively. Both projects are being constructed under the hybrid annuity model, in which the government and developer share the costs of construction.
The transactions will be completed after the projects enter commercial operation. In a similar deal last month, KNR agreed to sell another project in Tamil Nadu to Cube for INR736 million.
Cube was formed in 2014 with the backing of I Squared and International Finance Corporation (IFC), and seeks majority stakes in Indian toll roads, with a focus on developers with operational history and established historic cash flows. Its portfolio includes sections of the NH-7 highway in Andhra Pradesh and the NH-11 highway in Rajasthan.
Cube is also backed by a consortium of Japanese investors, led by Mitsubishi and including the government-backed Japan Overseas Infrastructure Investment Corporation (JOIN) and highway operator NEXCO East, that acquired a 20% stake in the platform for an undisclosed amount in 2017.
I Squared is currently investing its second global fund, which closed last year at $7 billion. The firm targets energy, utilities, and transportation assets in the Americas, Europe, and select high-growth economies. Its Asia commitments include Hong Kong’s Hutchison Global Communications and Indian rooftop solar player Amplus Energy Solutions.
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