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Cube Highways Trust has finalised the acquisition of two strategic highway assets in Jammu and Kashmir Quazigund Expressway Pvt Ltd and Athaang Jammu Udhampur Highway Pvt Ltd from the National Infrastructure Investment Fund. The deal, valued at INR 4,185 crore, spans approximately 80 kilometres and includes assets with over six years of remaining concession life. These highways offer assured semi-annual annuity payments from the National Highways Authority of India (NHAI), reducing exposure to traffic-linked risks. The Trust anticipates an accretive impact on its distributable cash flows of INR 2.3 per unit annually.
Cube Highways Trust announced it had completed the acquisition of two prominent highway assets in Jammu and Kashmir from the National Infrastructure Investment Fund (NIIF), with the total enterprise value pegged at INR 4,185 crore, inclusive of cash and subject to all final adjustments as per the Share Purchase Agreement. Advertisement
Managed by Cube Highways Fund Advisors Pvt Ltd, the Trust has taken over Quazigund Expressway Pvt Ltd and Athaang Jammu Udhampur Highway Pvt Ltd. These road assets, stretching nearly 80 kilometres, form a vital part of the regional infrastructure in Jammu and Kashmir.
Among the two, the Quazigund Expressway features one of the country's longest bi-directional tunnels, enhancing cross-valley connectivity, while the Athaang Jammu Udhampur Highway plays a crucial role as a transport artery between Jammu and Srinagar. Their significance lies not only in geography but also in the concession structure. Each asset holds a residual concession period exceeding six years and benefits from semi-annual fixed annuity payments from NHAI, providing consistent and reliable revenue flows shielded from volume-related risk.
According to Cube InvIT CEO Vinay C Sekar, the transaction is expected to enhance the Trust's net distributable cash flows by an average of INR 2.3 per unit annually over the next five years. He remarked that the acquisition aligns with their strategy to deliver stable and long-term cash flows to investors.
Cube Highways Trust is supported by a robust and diversified investor pool, which includes I Squared Capital, the Abu Dhabi Investment Authority (ADIA), British Columbia Investment Management Corporation, and Mubadala Investment Company-Abu Dhabi's sovereign investor. This diverse backing reflects global confidence in India's infrastructure growth story, particularly in annuity-based roads.
Source - PTI
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