Actis, a UK-based infrastructure investor, has acquired a portfolio of operational and under-construction road assets from Patel Infrastructure in India's Hybrid Annuity Model (HAM). Valued at approximately USD 180 million, the deal includes two operational assets and two under-construction projects, adding stability to Actis' investment strategy. These assets, awarded by NHAI, offer stable revenues tied to interest rates, appealing to investors. Actis views India's road sector as promising and plans further transactions. The recent acquisition follows Actis' successful purchase of six road assets from Welspun Enterprises in 2022. With this move, Actis aims to consolidate its position in India's infrastructure market, contributing to the country's development agenda.
Actis, a prominent UK-based infrastructure investor, has announced its acquisition of a portfolio of operational and under-construction road assets from Patel Infrastructure in the Hybrid Annuity Model (HAM). The deal, which represents a significant move in Actis' investment strategy in India, includes two operational assets already purchased by the firm, with two more in the process of acquisition.
The transaction, valued at approximately USD 180 million, comprises an equity portion ranging between USD 1.04 billion to USD 1.2 billion. These assets, awarded by the National Highways Authority of India (NHAI), offer stable revenues linked to interest rates, adding to their attractiveness for investors.
Actis sees the Indian road sector as a promising area for investment and intends to pursue further transactions in this space. The assets acquired include a 48.8 km section of NH-12 (Darah-Jhalawar Teendhar Section) in Rajasthan, along with a 31-km section of the eight-lane Vadodara Kim Expressway. Additionally, under-construction projects such as a 50.48 km stretch on NH-45C in Tamil Nadu and a 47.83 km stretch of NH-45C are part of the portfolio.
This recent acquisition follows Actis' successful purchase of six operating road assets from Welspun Enterprises in 2022, valued at approximately INR 6,025 crore (USD 775 million). Adrian Mucalov, Partner and Head of Long-Life Infrastructure at Actis, emphasised the significance of this expansion in India's infrastructure market. Mucalov highlighted the potential in both the energy and infrastructure sectors, underlining the importance of investing in critical infrastructure in burgeoning markets. He cited benefits such as improved road usage, safety, pollution reduction, and enhanced connectivity and growth potential.
Ernst & Young LLP served as the exclusive financial advisor to Actis on the transaction, while Standard Chartered Bank acted in the same capacity for Patel Infrastructure. The deal shows Actis' commitment to strategic investments in critical infrastructure assets globally, particularly in high-growth markets like India.
With this acquisition, Actis aims to further consolidate its position as a key player in India's infrastructure landscape, contributing to the country's development agenda while delivering value to its investors.
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