Cube Highways Trust has cemented its presence in India’s northern infrastructure corridor with the acquisition of two high-value road projects in Jammu and Kashmir, in a deal valued at ₹4,185 crore. The strategic purchase, which includes the Quazigund Expressway and the Athaang Jammu Udhampur Highway, was completed through an agreement with the National Investment and Infrastructure Fund (NIIF), reflecting a significant boost to the Trust’s annuity-based infrastructure portfolio.
The roads, spanning nearly 80 kilometres combined, are integral to regional connectivity in the Union Territory. The Quazigund Expressway features one of India’s longest bi-directional tunnels, easing movement through the Pir Panjal range, while the Jammu Udhampur Highway serves as a critical logistics and passenger corridor linking the Jammu plains to the Kashmir valley.Both assets come with semi-annual fixed annuity payments from the National Highways Authority of India (NHAI), insulating revenue streams from traffic volume fluctuations. With over six years of residual concession life remaining on each project, Cube Highways is assured of steady, inflation-hedged income flows.
The Trust, managed by Cube Highways Fund Advisors Pvt Ltd, has positioned the acquisition as part of its strategy to build a long-duration, yield-generating infrastructure portfolio. The firm estimates the transaction will enhance net distributable cash flows by an average of ₹2.3 per unit annually over the next five years. This increase is particularly attractive for infrastructure-focused institutional investors seeking dependable returns amid global market volatility.
Backed by a global consortium that includes I Squared Capital, Abu Dhabi Investment Authority (ADIA), British Columbia Investment Management Corporation, and Mubadala Investment Company, Cube Highways’ latest acquisition reinforces global confidence in India’s infrastructure growth trajectory. The annuity model, increasingly favoured over toll-based revenue systems, has emerged as a preferred option for long-term investors prioritising cash flow certainty and risk minimisation.
This transaction also highlights the evolving nature of India’s infrastructure financing landscape, where private equity-backed infrastructure investment trusts (InvITs) are emerging as key stakeholders in the operation and maintenance of public assets. In high-sensitivity geographies like Jammu and Kashmir, this approach offers dual benefits—enhanced service delivery through private management and financial sustainability through long-term annuity-backed contracts.
The sale by NIIF, which itself is a quasi-sovereign vehicle focused on catalysing infrastructure investment, represents a successful divestment aligned with its mandate to recycle capital for new greenfield development. For Cube Highways, the acquisition is a timely opportunity to consolidate its footprint in high-impact corridors while aligning with national infrastructure goals.
In the broader context, investments like this are critical to India’s push for resilient, climate-ready road infrastructure, particularly in regions where weather and terrain pose serious logistical challenges. These roads not only improve mobility but also underpin social and economic integration, a goal central to India’s inclusive development vision.
With this acquisition, Cube Highways Trust has demonstrated how carefully structured public-private partnerships can ensure both investor returns and social dividends, especially in strategically important regions such as Jammu and Kashmir.
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Jammu Roads Acquired in ₹4185 Crore Deal
