Actis to acquire 4 HAM road assets from Patel Infrastructure

Actis has completed the acquisition of two completed assets and is in the process to acquire an additional two assets upon completion, it said.

Emerging markets infrastructure investor Actis on February 8 said it is acquiring a portfolio of four Hybrid Annuity Model (HAM) road assets from construction firm Patel Infrastructure Ltd.

Actis has completed the acquisition of two completed assets and is in the process to acquire an additional two assets upon completion, it said in a statement. Financial details of the transaction were not disclosed.

“The assets, awarded by the National Highways Authority of India (NHAI), are highly attractive given the availability-based fixed revenues with interest rate indexation features. Given the scalable and attractive opportunity set in India, the roads sector is expected to be one of the key pillars of the firm’s investment strategy in the country, with several other transactions in the pipeline,” Actis said.

This is the second roads portfolio to be acquired by Actis in India, through its Long-Life Infrastructure Fund.

In June 2022, Actis acquired a portfolio of six operating highway toll road projects in India from Welspun Enterprises Limited, part of the Welspun Group, for an aggregate enterprise value of $775 million.

Adrian Mucalov, Partner and Head of Long-Life Infrastructure at Actis, said, "The acquisition of these NHAI HAM concessions expands our footprint in India, a market where we see huge potential in both the energy and infrastructure sectors. We invest in critical infrastructure in growth markets where governments look to foreign investment to meet that infrastructure demand.  Investing in transport systems such as toll roads can lead to more efficient road usage, improved road safety, reduced car idling and pollution, and lead to quicker journeys with lower emissions while increasing connectivity and growth potential."

Actis will focus on improving road safety while also maximising electronic tolling; using recycled asphalt for major maintenance; and installing solar PV on toll plazas and office buildings, the statement added.