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HomeInfrastructureMacquarie Asset Management to Sell $2 Billion Indian Highway Portfolio

Macquarie Asset Management to Sell $2 Billion Indian Highway Portfolio

Australia-based Macquarie Asset Management (MAM), the world’s largest infrastructure asset manager, is gearing up to sell its largest road portfolio in India. The portfolio, comprising nine national highway stretches across Andhra Pradesh and Gujarat, is valued at around $2 billion. The sale process is set to begin early next year, with a banker expected to be appointed by the end of December.

MAM’s entry into the Indian highway market dates back to 2018 when it acquired the rights to manage these 648 km-long stretches from the National Highways Authority of India (NHAI). The acquisition was part of the first Toll-Operate-Transfer (ToT) auction, where MAM won the bid by offering Rs 9,681 crore, 1.5 times the base price set by NHAI. This portfolio stands out due to its long 30-year concession period, which provides a stable and predictable income stream, making it a sought-after asset. The portfolio includes stretches along National Highway 16, which connects Kolkata to Chennai, and the remaining stretches are in Gujarat, offering connectivity to key ports like Kandla and Mundra. These highways serve as vital links to major industrial hubs, ensuring significant traffic flow, which is reflected in the portfolio’s strong toll revenue growth. In FY23, the toll income for the nine stretches grew by 12%, reaching Rs 915 crore.

MAM, with over $600 billion in assets under management, has made over 60 investments in India, with a focus on toll roads and renewables. The firm has shown keen interest in expanding its presence in the country and plans to continue investing in sectors like energy transition and digital infrastructure. The decision to sell comes amid a growing trend in the Indian infrastructure market, with investors like Brookfield and the National Investment and Infrastructure Fund (NIIF) also monetizing their road portfolios. This is an indication of the increasing value and investor interest in India’s robust infrastructure sector. Macquarie’s successful track record in India, combined with the country’s thriving economy and favorable policy framework, signals that the firm will continue to explore new opportunities. In fact, MAM’s group head, Ben Way, recently emphasized plans to invest billions of dollars in India’s infrastructure sector in the coming years.

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