Project News Detail
| Project No : | 205691 |
|---|---|
| Project Title : | NIIF Transfers ?4,185 Cr Annuity Road Assets to Cube Highways InvIT |
| Company Name : | National Investment And Infrastructure Fund Limited |
| Project Detail : | National Investment and Infrastructure Fund (NIIF) and Cube Highways Trust, managed by Cube Highways Fund Advisors Pvt. Ltd., have completed the transfer of two operational annuity road projects from NIIF to Cube InvIT. The assets, Quazigund Expressway Pvt. Ltd. and Athaang Jammu Udhampur Highway Pvt. Ltd., span 80 km in Jammu and Kashmir. Quazigund includes one of India’s longest bi-directional tunnels, while the Jammu-Udhampur stretch is a vital link to Srinagar. Both projects have over six years of residual concession life and receive fixed annuity payments from NHAI, ensuring stable, traffic-insulated cash flows. The total enterprise value of the deal is ?4,185 crore, subject to closing adjustments. Vinay C. Sekar, CEO of Cube InvIT, said, "We are pleased to collaborate with NIIF on this important transaction. Today's acquisition will add to the high-quality, Pan-India portfolio and enhance the Trust’s exposure to fixed-revenue annuity assets that are unaffected by traffic risks and economic cycles. It also showcases Cube InvIT’s disciplined capital allocation strategy and prudent use of its balance sheet for acquiring de-risked assets with strong fundamentals This transaction is expected to be accretive to net distributable cash flows by ~INR 2.3 per unit annually, on average, over the next five years." Pankaj Vasani, Group CFO of Cube InvIT, said, "The strategic addition of these two completed and revenue- generating annuity assets optimally complements our existing portfolio of assets and grows the annuity exposure. Following this transaction, annuity revenue will account for 33% of Cube InvIT’s total revenue. With a Net Debt to AUM ratio of ~49% (post transaction) and a AAA-rated credit profile from CRISIL, ICRA, and India Ratings, Cube InvIT remains well-positioned to pursue further value-accretive acquisitions.” Vinod Giri, Managing Partner, Master Fund, NIIF, said, “This transaction reflects NIIF’s ability to underwrite complex transactions and acquire large infrastructure assets, de-risk them with a comprehensive plan, improve the credit profile, and create value. These assets strongly reflect the core competency of Athaang, the wholly owned roads platform of NIIF, in managing high-quality infrastructure assets with operational excellence through best-in-class systems and processes. This track record enables us to deliver strong returns and attract global institutional capital.” |
| Project Location : | Udhampur - Jammu-kashmir - India |
| Project Estimation : | Refer Document |
| Status : | Announced |