Canada's OMERS makes first India infrastructure investment
Ontario Municipal Employees Retirement System (OMERS) has made its first investment in India’s infrastructure sector, buying a 22% stake in infrastructure investment trust IndInfravit Trust for INR8.7 billion ($122 million).
IndInfravit holds a portfolio of five operational toll road concessions in Tamil Nadu, Karnataka, Telangana and Rajasthan, covering more than 600 kilometers. The roads were originally constructed and operated by L&T Infrastructure Development Projects (L&T IDPL), a subsidiary of Larsen & Toubro and investor in IndInfravit, and transferred to the trust upon its creation last year.
IndInfravit’s other backers include Canada Pension Plan Investment Board (CPPIB) and Allianz Capital Partners (ACP), which joined as anchor investors in the platform in 2018. CPPIB committed about C$200 million ($152 million) for a 30% stake, while Allianz acquired a 25% stake for an undisclosed amount.
“This investment provides an attractive entry point into India, one of the most dynamic markets globally, alongside well-trusted partners,” said Bruce Crane, a managing director and head of OMERS Infrastructure in Asia, in a statement. “We look forward to working constructively with the other unitholders, management and all local stakeholders to grow this platform in the coming years.”
OMERS Infrastructure invests globally on behalf of OMERS, seeking large-scale assets with stability and strong cash flows in sectors including energy, transportation, and government-regulated services. The pension plan’s Asia presence includes offices in Sydney and Singapore, and OMERS Infrastructure has established partnerships with Japanese LPs including the Government Pension Investment Fund and Development Bank of Japan.
As of December 2017, OMERS had C$95 billion in assets under management, of which 64% was invested outside of Canada. Its global infrastructure portfolio stood at C$16.9 billion. Other private assets exposure comprised C$9.1 billion in private equity and C$11.8 billion in real estate.
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