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Abu Dhabi’s sovereign investor Mubadala Investment Co., along with Canadian pension investment manager British Columbia Investment Management Corporation (BCI) have invested in Cube Highways Trust (CHT), an infrastructure investment trust (InvIT) in India.
The InvIT raised around $630 million to develop its portfolio of 18 toll and annuity road assets spanning 1,423.60 kilometers across India. BCI, Mubadala and domestic institutional investors have subscribed to the ordinary units, the company said in a statement.
The first tranche of assets held by the InvIT will have 17 NHAI toll road assets and one NHAI annuity road asset. In addition, pursuant to a right of first offer, CHT will also have an opportunity to access a pipeline of seven highway assets.
The investment is in line with the UAE wealth fund's strategy of increasing its focus on Indian assets.
Saed Arar, Executive Director – Head of Traditional Infrastructure, Mubadala, said India offers the most significant global growth opportunity in roads with a robust and well-regulated market for infrastructure investment.
"With more than $100 billion allocated to the road construction program, and a potential $20bn+ addressable acquisition pipeline, Cube Highways is the most well positioned platform for Mubadala to drive investments in roads and capitalize on this market opportunity."
Cube Highways' existing investors include I Squared Capital, Abu Dhabi Investment Authority (ADIA), and Japan Highways International BV.
(Reporting by Brinda Darasha; editing by Seban Scaria)
