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Edelweiss to Purchase INR 6,000 cr Worth Road Assets From L&T, CPPIB

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Edelweiss to Purchase INR 6,000 cr Worth Road Assets From L&T, CPPIB

CEOInsights Team, 0

India's largest construction company Larsen & Toubro and Canadian pension fund manager Canada Pension Plan Investment Board on Saturday said that they have agreed to transfer their 100 percent shareholding in L& T Infrastructure Development Projects and its subsidiaries to Edelweiss Alternative Asset Advisors's Infrastructure Yield Plus Strategy fund for an enterprise value of Rs.6,000crore. L& T Infrastructure Development Projects is a joint venture between L& T and Canada Pension Plan Investment Board holding 51 percent and 49 percent stake respectively.

According to an exchange filing, L&T, CPP Investments will get gross proceeds of Rs.2,723.4 crore from the stake sale. CPP Investments initially invested into L&T Infrastructure Development Projects in 2014 and has
continued to be an active investor to India's infrastructure sector, including into IndInfravit.

L&T Infrastructure Development Projects portfolio comprises eight roads and one power transmission asset in India, spanning 4,900lanekm and 960km respectively. With this acquisition, Edelweiss Alternatives will have a diversified portfolio of 26 infrastructure assets comprising over 5,100 lane km of roads, 1,800 km of power transmission assets and ~813 MWp of renewables, Edelweiss Financial said in an exchange filing. "These assets have a proven track record of operations, are geographically dispersed and have long residual life, which is consistent with our investment strategy.
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We believe our asset management and operating capabilities, together with that of L& T IDPL, will help scale up this platform “Sreekumar Chatra, Managing Director, of Infrastructure Yield Strategy said. "Asset monetization and recycling capital hold the key to value creation and development in Infrastructure. We will continue to provide solutions to construction companies and developers to recycle capital to fund their growth. On completion of this acquisition, there will be a high-quality diversified infrastructure portfolio of 26 assets across 13 states, making us a leading infrastructure investor in India” Subahoo Chordia, Head Infrastructure Funds, Edelweiss Alternatives said.