Cube Highways Trust to acquire seven highway assets at enterprise value of Rs 5,172 crore

Cube Highways Trust, managed by Cube Highways Fund Advisors Pvt Ltd, on Thursday said it will acquire seven highway assets from Singapore-based Cube Highways and Infrastructure III Pte Ltd and Cube Highways Infrastructure Pte Ltd at an enterprise value of Rs 5,172 crore.

The highway assets, including six hybrid annuity model (HAM) assets and one build-operate-transfer (BOT) asset, span around 2,200 lane kilometres and are spread across geographic footprints of Andhra Pradesh, Maharashtra, Telangana, and Tamil Nadu, Cube Highways Trust said in a statement.

"Cube Highways Trust, managed by Cube Highways Fund Advisors Pvt. Ltd. Today announced the proposed acquisition of up to 100 per cent equity shareholding in seven highway assets from Singapore-based Cube Highways and Infrastructure III Pte Ltd and Cube Highways Infrastructure Pte Ltd, the sponsors of Cube InvIT, in one or more tranches," it said.

The proposed acquisition was approved by the board of directors of the investment manager held on Thursday, subject to the approval of Ordinary Unitholders of Cube InvIT, the statement added.

Cube InvIT group CFO Pankaj C Vasani said, "These assets (seven highway assets) have an enterprise value of Rs 5,172 crores as of February 29, 2024, and will be acquired through internal accruals and a mix of debt, subject to necessary approvals." 

According to the statement, the board has also approved the postal ballot notice to seek the approval of ordinary unitholders for the proposed acquisition.

With these acquisitions, InvIT's asset portfolio will consist of 25 diversified assets spread across 13 states, it said.

Cube Highways Trust is engaged in implementing the public-private partnership (PPP) model in the country's highways sector to operate and manage highway projects in association with the central and state governments.

It is backed by a diversified investor base, including an arm of Abu Dhabi Investment Authority (ADIA), British Columbia Investment Management Corporation and Abu Dhabi's sovereign investor Mubadala Investment Company, among others.