Cube Highways Trust Set to Acquire Seven Highway Assets Worth Rs 5,172 Crore

In a significant move within India's infrastructure sector, Cube Highways Trust, under the management of Cube Highways Fund Advisors Pvt Ltd, announced its decision to acquire seven highway assets from Singapore-based entities Cube Highways and Infrastructure III Pte Ltd and Cube Highways Infrastructure Pte Ltd. This acquisition, valued at an enterprise level of Rs 5,172 crore, marks a considerable expansion in the trust's asset portfolio.

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The assets in question include six hybrid annuity model (HAM) assets and one build-operate-transfer (BOT) asset, collectively covering approximately 2,200 lane kilometres. These assets are strategically located across four Indian states: Andhra Pradesh, Maharashtra, Telangana, and Tamil Nadu. This acquisition not only broadens the geographic footprint of Cube Highways Trust but also enhances its operational capacity within the country's highway sector.

The board of directors of the investment manager has greenlit the proposed acquisition, which now awaits the nod from the Ordinary Unitholders of Cube InvIT. The financial strategy for this acquisition involves a blend of internal accruals and debt financing, pending the necessary approvals. Pankaj C Vasani, Group CFO of Cube InvIT, highlighted the strategic value of these assets and their contribution to the enterprise's valuation as of February 29, 2024.

Following this acquisition, Cube Highways Trust's asset portfolio will boast 25 diversified assets spread across 13 states. This expansion is a testament to the trust's commitment to leveraging the public-private partnership (PPP) model for enhancing India's highway infrastructure. The trust collaborates closely with both central and state governments to operate and manage highway projects effectively.

Backed by a robust investor base that includes notable names such as Abu Dhabi Investment Authority (ADIA), British Columbia Investment Management Corporation, and Abu Dhabi's sovereign investor Mubadala Investment Company, Cube Highways Trust is poised for further growth. This acquisition is a strategic step towards consolidating its position in India's highways sector and contributing to the nation's infrastructure development.