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GIP, located in the United States, will sell seven roadway assets in India to KKR.
Image courtesy of Highway Concessions One.
July 5, 2021, by Mars W. Mosqueda Jr.
KKR, a global private equity powerhouse, has signed agreements to buy seven motorway properties in India from Global Infrastructure Partners, a US-based investment group (GIP).
However, the deal’s size was not disclosed.
According to the definitive agreements, KKR will buy GIP’s whole stake in Highway Concessions One (HC1), an Indian road platform that administers and runs seven road assets.
HC1 manages a portfolio of national and state highway assets across 7 states, including Gujarat, Karnataka, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu, and Telangana, with a total length of 487 kilometers.
When GIP bought IDFC Alternatives’ infrastructure funds division in 2018, it acquired a stake in the portfolio of assets.
The acquisition is being made by KKR through its $3.9 billion KKR Asia Pacific Infrastructure Fund, which is the firm’s largest in the region and focuses on infrastructure projects.
Through the acquisition of GIP’s shareholding in HC1, the private equity firm said it hopes to assist strengthen and develop India’s national highway network, which serves around 40% of overall traffic but only accounts for 2% of the country’s road network.
According to Hardik Shah, managing director and head of India Infrastructure at KKR, roads are one of India’s largest and most important infrastructure assets, with rapidly expanding passenger and commercial vehicle traffic driving strong demand to extend the country’s road network.
“This is why, in India, the transportation sector is a critical component of our infrastructure strategy. We are ecstatic to invest in a high-quality platform and to contribute to India’s transportation infrastructure through HC1,” Shah added.
The KKR Asia Pacific Infrastructure Fund will make its third investment in India, and its first in Asia’s transportation industry.
When the KKR Asia Pacific Infrastructure Fund was launched in 2019, it had a target of $3 billion. The PE firm, on the other hand, increased their demand objective. A total of $300 million was invested by the company and its employees.
India Grid Trust (IndiGrid), an infrastructure investment trust in India, and Virescent Infrastructure, a renewable energy company in the country, are two of KKR’s recent infrastructure investments in India.
Highway Concessions One KKR Global Infrastructure Partners
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