KKR's Highways Infrastructure Trust (HIT) has revealed its acquisition of 12 road projects from PNC Infratech and PNC Infra Holdings, constituting one of India's most substantial transactions in the road and highways sector, valued at Rs 9,005.7 crore. Pending approval from regulatory authorities and banks, the portfolio includes 11 hybrid annuity concessions from the National Highways Authority of India and one toll road concession from the Uttar Pradesh State Highways Authority. Encompassing around 3,800 lane kilometres across multiple states, this move significantly expands HIT's infrastructure footprint, emphasizing a strategic commitment to India's growing infrastructure sector and fostering expectations of improved connectivity and economic growth in the regions involved.
KKR's Highways Infrastructure Trust (HIT) has announced the acquisition of 12 road projects from PNC Infratech and PNC Infra Holdings, marking one of the largest transactions in India's road and highways sector with an enterprise value of Rs 9,005.7 crore. This strategic acquisition is currently awaiting approval from relevant regulatory authorities and banks, as it is subject to customary conditions.
The acquired portfolio includes 11 hybrid annuity concessions from the National Highways Authority of India (NHAI) and one toll road concession from the Uttar Pradesh State Highways Authority (UPSHA). These projects, encompassing approximately 3,800 lane kilometers across Rajasthan, Uttar Pradesh, Madhya Pradesh, and Karnataka, represent a significant expansion in HIT's infrastructure footprint. The hybrid annuity model, a key feature of these concessions, involves NHAI covering 40% of the total project cost, with the remaining investment provided by the developer.
Currently, 10 out of the 12 projects are operational, while the remaining two are under construction. These under-construction projects will be incorporated into the portfolio upon commencement of their operations.
In conclusion, this acquisition by KKR's Highways Infrastructure Trust not only marks a significant expansion of its portfolio but also reflects a strategic move in strengthening its position in India's growing infrastructure sector. The deal, upon completion, is set to bring a new dynamism to the road and highways industry, with expectations of enhanced connectivity and economic growth in the involved regions
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