Cube Highways Trust has acquired two operational highway projects in Jammu and Kashmir from the National Investment and Infrastructure Fund (NIIF) for an enterprise value of ₹4185 crore. This acquisition underscores Cube Highways’ strategic focus on expanding its presence in India’s rapidly developing road infrastructure sector.
The two assets involved in this transaction are Quazigund Expressway Private Limited and Athaang Jammu Udhampur Highway Private Limited. Together, these projects span approximately 80 kilometres and are integral to the region’s transportation network. Quazigund Expressway features one of India’s longest bi-directional tunnels, while the Jammu Udhampur Highway serves as a crucial link between Jammu and Srinagar, facilitating seamless connectivity across the Union Territory. Both projects operate under an annuity-based concession model, ensuring fixed semi-annual payments from the National Highways Authority of India (NHAI). This arrangement provides stable and predictable cash flows, effectively insulating the assets from traffic volume fluctuations and enhancing their attractiveness to investors seeking long-term, low-risk returns.
The acquisition aligns with Cube Highways Trust’s strategy to deploy its capital efficiently, acquiring high-quality assets that complement its existing portfolio. With this addition, Cube InvIT’s portfolio now encompasses 27 assets across India, collectively spanning over 1,940 kilometres. The trust’s diversified portfolio includes projects in 12 states, reinforcing its position as a leading player in India’s road infrastructure sector. The transaction is structured as an all-cash deal and is subject to customary closing conditions, including regulatory approvals from the Competition Commission of India (CCI) and the NHAI. Upon completion, Cube Highways Trust will assume full ownership and operational control of the two assets, further consolidating its presence in the strategic Jammu and Kashmir region.
This acquisition not only enhances Cube Highways Trust’s infrastructure footprint but also reflects the growing investor confidence in India’s road sector. The government’s emphasis on infrastructure development, coupled with initiatives like the Bharatmala Pariyojana and increased capital expenditure allocations, continues to attract both domestic and international investments into the sector. As Cube Highways Trust integrates these assets into its portfolio, stakeholders can anticipate strengthened infrastructure connectivity in Jammu and Kashmir, contributing to regional economic development and improved transportation efficiency. The deal also sets a precedent for future infrastructure investments in the region, highlighting the potential for sustainable and profitable ventures in India’s evolving road infrastructure landscape.
Also Read :NHAI Approves Kherki Daula Toll Relocation
