Macquarie Plans to Sell $2 Billion Indian Road Portfolio
13 Dec 2024
2 Min Read
CW Team
Macquarie Asset Management (MAM), the world鈥檚 largest infrastructure asset manager, is looking to sell its largest road portfolio in India, consisting of nine national highway stretches, valued at approximately $2 billion. The sale process will begin early next year, with plans to appoint a banker by the end of December.
MAM acquired the rights to manage 648 km of highways in Andhra Pradesh (AP) and Gujarat from the National Highway Authority of India (NHAI) in 2018 for Rs 96.81 billion, which was 1.5 times the base price set by NHAI. These roads are part of the first Toll-Operate-Transfer (ToT) auction. The portfolio includes stretches along NH 16, which forms part of the Golden Quadrilateral connecting Kolkata and Chennai, and benefits from high traffic potential due to nearby industrial clusters and ports.
The toll income for the nine stretches reached Rs 9.15 billion in FY23, showing a 12% improvement from FY22, driven by higher toll rates and increasing traffic. Around 70% of the revenue comes from six stretches in AP, which are strategically positioned near major ports like Visakhapatnam, Kakinada, and Krishnapatnam.
MAM鈥檚 investment portfolio in India, which also includes toll roads and renewables, totals over $600 billion in assets under management. The firm is also exploring further investments in energy transition, digital infrastructure, and real estate.
In a similar move, Canadian investor Brookfield Asset Management sold its road portfolio in 2022 to the Canada Pension Plan Investment Board for $1.2 billion, while the National Investment and Infrastructure Fund (NIIF) is looking to sell its Athaang Infrastructure portfolio, valued at $1 billion.
MAM plans to deploy billions more in India in the coming years, citing the country's economic scale, investment opportunities, and favourable policy environment.
(ET)
Macquarie Asset Management (MAM), the world鈥檚 largest infrastructure asset manager, is looking to sell its largest road portfolio in India, consisting of nine national highway stretches, valued at approximately $2 billion. The sale process will begin early next year, with plans to appoint a banker by the end of December.
MAM acquired the rights to manage 648 km of highways in Andhra Pradesh (AP) and Gujarat from the National Highway Authority of India (NHAI) in 2018 for Rs 96.81 billion, which was 1.5 times the base price set by NHAI. These roads are part of the first Toll-Operate-Transfer (ToT) auction. The portfolio includes stretches along NH 16, which forms part of the Golden Quadrilateral connecting Kolkata and Chennai, and benefits from high traffic potential due to nearby industrial clusters and ports.
The toll income for the nine stretches reached Rs 9.15 billion in FY23, showing a 12% improvement from FY22, driven by higher toll rates and increasing traffic. Around 70% of the revenue comes from six stretches in AP, which are strategically positioned near major ports like Visakhapatnam, Kakinada, and Krishnapatnam.
MAM鈥檚 investment portfolio in India, which also includes toll roads and renewables, totals over $600 billion in assets under management. The firm is also exploring further investments in energy transition, digital infrastructure, and real estate.
In a similar move, Canadian investor Brookfield Asset Management sold its road portfolio in 2022 to the Canada Pension Plan Investment Board for $1.2 billion, while the National Investment and Infrastructure Fund (NIIF) is looking to sell its Athaang Infrastructure portfolio, valued at $1 billion.
MAM plans to deploy billions more in India in the coming years, citing the country's economic scale, investment opportunities, and favourable policy environment.
(ET)
Next Story
Mumbai-Ahmedabad Bullet Train Set to Launch by 2028
India鈥檚 first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India鈥檚 infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..
Next Story
Mumbai-Gandhinagar Train Service Enhances Passenger Capacity
The Mumbai Central鈥揋andhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India鈥檚 busiest business corridors. This upgrade, effective from 11 May, raised the train鈥檚 seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai鈥揂hmedabad鈥揋andhinagar route, which regularly operates at over 150 percent seat occupancy...
Next Story
Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently
Delhi鈥檚 ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river鈥檚 health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..
