Actis acquires portfolio of operating Indian highway projects from Welspun Enterprises Limited

Actis acquires portfolio of operating Indian highway projects from Welspun Enterprises Limited

This will be the first road investment in India from Actis’ Long Life Infrastructure Fund (ALLIF)

FPJ Web DeskUpdated: Friday, June 10, 2022, 09:33 AM IST
article-image
The projects are being purchased from WEL, part of the Welspun Group, an infrastructure development company focusing on Road, Water and Wastewater segments. /Logo |

Actis, a global investor in sustainable infrastructure, has announced it has entered into an agreement to purchase a portfolio of six operating highway toll road projects in India from Welspun Enterprises Limited (WEL), part of the Welspun Group, for an aggregate Enterprise Value of $775 million (Rs. 6,000 crores).

The portfolio benefits from a stable mix of annuity and toll cash flows, with the projects located strategically across India including in the most prominent North-South highway corridor.

This will be the first road investment in India from Actis’ Long Life Infrastructure Fund (ALLIF), which seeks to invest in stabilised operating assets, within multiple infrastructure sectors that deliver a strong cash yield for investors.

Aligning with this objective, five of the six toll roads have a Hybrid Annuity concession, whereby the concessionaire gets a fixed pay-out to ensure road availability. The concessions for the five projects are awarded by National Highways Authority of India and have received a AAA local credit rating.

The projects are being purchased from WEL, part of the Welspun Group, an infrastructure development company focusing on Road, Water and Wastewater segments.

The Company also has investments in Oil & Gas Exploration. Backed by experienced management and strong parentage, WEL has a proven track record with the execution of water supply projects and over 1,000 km of road projects.

The completion of the deal is subject to certain conditions including approval from the lenders of Highway Projects and the National Highways Authority of India and the Public Works Department of Government of Maharashtra.

Adrian Mucalov, Partner, Head of Long Life Infrastructure at Actis, said: “This is a strong, first of its kind, investment for ALLIF, which fully aligns with the fund’s core objective - to invest globally in infrastructure assets that provide consistent yield for our investors.”

Sumit Sen, Partner at Actis, added: “We are pleased to deepen our commitment to India by supporting the development of some of India’s most exciting infrastructure projects. The toll roads are well diversified and strategically located; they are a highly attractive addition to our portfolio that aligns perfectly with ALLIF’s investment mandate. We look forward to pursuing similar long life infrastructure projects in the future, including WEL’s balance under construction road portfolio.”

RECENT STORIES

Ventive Hospitality And Marriott International Sign Deal For 7 New Hotels, Including Ultra-Luxury...

Ventive Hospitality And Marriott International Sign Deal For 7 New Hotels, Including Ultra-Luxury...

Gold Jumps ₹550 On Fresh Buying, Silver Stays Flat For Third Straight Session

Gold Jumps ₹550 On Fresh Buying, Silver Stays Flat For Third Straight Session

Canva Faces Temporary Outage In India; Users Report Of Issues With Saving and Editing Designs

Canva Faces Temporary Outage In India; Users Report Of Issues With Saving and Editing Designs

Real Estate Company Omaxe Buys 450-Acre Land In Indore To Develop Township At An Investment Of...

Real Estate Company Omaxe Buys 450-Acre Land In Indore To Develop Township At An Investment Of...

Sensex Ends 270 Points Higher On Late Buying, Gains Support From Asian Markets

Sensex Ends 270 Points Higher On Late Buying, Gains Support From Asian Markets