KKR to acquire seven highway assets from Global Infrastructure Partners in India

Global investment firm KKR on Monday said it will acquire seven highway assets in India with a total length of 487 kilometres from Global Infrastructure Partners (GIP).
 
The firm said it has signed definitive agreements under which it will acquire GIP's entire interest in Highway Concessions One (HC1) and seven highway assets. However, it didn't disclose the financial details about the transaction.
 
HC1 is a platform that manages GIP's road portfolio which spans across seven states including Gujarat, Karnataka, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu, and Telangana.
 
KKR said it had made the latest investment from the KKR Asia Pacific Infrastructure Fund. The investment represents KKR's third investment in India from the Fund and the firm's first investment in Asia's transport sector, it said in a release.

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"Through the acquisition of GIP's interest in HC1, KKR aims to help strengthen and expand India's national highway network, which serves about 40 per cent of total traffic but accounts for only 2 per cent of the country's road network," it said.
 
"Roads are one of the largest and most crucial infrastructure assets in India, where the world's second-largest road network is located. Rapidly increasing passenger and commercial vehicle traffic has driven the strong demand to expand the country's road network even further and the reciprocal need for investment in the sector. This is why the transportation sector is a key area of our infrastructure strategy in India. We are truly excited to invest in a high-quality platform and through HC1 play a part in India's transport infrastructure," KKR's Managing Director and Head of Infrastructure Hardik Shah said.
 
KKR said the investment is in line with the government's focus on improving connectivity between cities. EY and Deloitte acted as KKR's advisors for the transaction, while AZB & Partners and Simpson Thacher & Bartlett acted as legal advisors.
 
Recently, KKR also invested in India Grid Trust, a leading infrastructure investment trust, and Mumbai-based renewable energy company Virescent Infrastructure.

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