L&T’s InvIT closes acquisition of Rs 8,270 crore roads from Brookfield

Illustration: Ajay Mohanty

IndInfravit, the infrastructure investment fund (InvIT) set up by Larsen & Toubro, on Friday announced that it has completed the acquisition of four operational road projects managed by Brookfield Asset Management in an all-cash deal worth Rs. 8,270 crore.

The agreement with Brookfield, first announced on June 10, was to acquire five road assets, four of which are Simhapuri Expressway, Rayalseema Expressway, Mumbai-Nashik Expressway and Kosi Bridge.

The company told the exchanges that the acquisition of the Fifth Road project – Gorakhpur Infrastructure Company Private Limited – is pending receipt of the required regulatory approvals and fulfillment of certain other conditions laid out in the final documents.

Post acquisition, InvIT consists of 7,300 kilometer (km) projects across eight states. This fund is backed by CPP Investments, OMERS Infrastructure and Allianz Capital Partners.

According to CPP Investments, the road portfolio consists of three toll roads and two toll roads annually, with approximately 2,300 km in Andhra Pradesh, Bihar, Maharashtra and Uttar Pradesh. Roads operate, on average, for about nine years, and the average remaining concession life is 20 years.

First published: June 16, 2023 | 3:42 p.m ist