Cube Highways and Infrastructure III, an affiliate of Cube Highways and portfolio company of I Squared Capital through its ISQ Global Infrastructure Fund II, has entered into an agreement with Reliance Infrastructure to acquire DA Toll Road (DATRPL), a toll road in the state of Haryana/Uttar Pradesh, India.
After the transaction, the Cube Highways group portfolio will have more than 4,500 lane-km of highways across India.
DATRPL operates the 180km, six-lane toll road connecting the national capital, Delhi, with Agra on National Highway (NH) 2.
The road is a 26-year concession, granted in 2010, for strengthening and widening the four-lane highway to a six-lane configuration and commenced collecting tolls in October 2012.
Cube Highways director and I Squared Capital partner Gautam Bhandari said: “We are pleased to expand our presence in the Indian highway sector with the acquisition of another quality asset.
“This investment reinforces Cube Highways’ position as a leading player in the Indian highway sector and furthers its disciplined growth plan of acquiring strategically located roads from leading construction companies and developers.”
Completion of the transaction is contingent upon fulfilment of certain customary regulatory and lender approvals.
Cube Highways Advisors CEO Harikishan Reddy said: “DATRPL forms a core part of NH 2, a main artery of the national highways network connecting North to East and Central India.
“The road has robust growth potential as it connects major industrial and tourist centers in North India including Delhi, Faridabad, Mathura and Agra.
“We anticipate even further growth following completion the entire NH 2 road project.”
Cube Highways, a Singapore-based company, invests in road and highway projects, along with other select infrastructure sectors in India.
It is an independent platform that uses the extensive transportation experience of its management and execution advisory teams.
Cube Highways shareholders consist of I Squared Capital, a wholly-owned subsidiary of the Abu Dhabi Investment Authority, International Finance Corporation, and a consortium of Japanese investors including Mitsubishi Corporation, Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development, East Nippon Expressway and Japan Expressway.
Image: Cube Highways to acquire Delhi-Agra toll road from Reliance Infra. Photo: Courtesy of Stephen Walker on Unsplash.