Global buyout major KKR on Wednesday announced that Ontario Teachers' Pension Plan Board has committed to invest up to $175 million in its road platform in India.
The road platform of KKR comprises 12 assets, including six that are proposed to be acquired for which definitive agreements have been signed.
These include 910 km of toll roads in 11 states -- Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Rajasthan, Tamil Nadu, Telangana and West Bengal.
There is significant potential to scale, with plans in place to acquire more assets in the future, an official statement said, adding the investment from Ontario Teachers' is expected to be completed by September after getting required approvals.
Typically, a road asset investment creates a steady income for the concession holder, courtesy of the toll paid by vehicles.
''We're delighted to further our investments in high-quality Indian infrastructure and to collaborate with KKR on creating greater connectivity, and increased opportunities for the country via an improved roads network,'' Ontario Teachers' managing director for infrastructure in Asia-Pacific Bruce Crane said.
KKR's head of infrastructure segment Hardik Shah said transportation forms an important part of its portfolio, courtesy of the government's focus on improving connectivity between cities.
This transaction follows KKR's recent infrastructure investments in the country, including the acquisition of Highway Concessions One, Virescent Infrastructure and the setting up of Virescent Renewable Energy Trust, which is labelled as the country's first renewable energy infrastructure trust, and India Grid Trust, the statement said.
It will be Ontario Teachers' third infrastructure investment in the country after bets like a 25 per cent stake in National Highways Infra Trust and being an anchor investor in the National Investment and Infrastructure Fund.
(With inputs from PTI)