Canada Pension To Invest $400 Million in Australian Freeway

The Canada Pension Plan Investment Board (CPPIB) announced on Sunday a $407 million investment in an Australian freeway project.

CPPIB is part of a group of investors that bought the toll road. The pension fund’s $400 million investment will snag it a 25 percent stake.

More from the Wall Street Journal:

Canada’s largest pension fund said Sunday it would invest over a half-billion Australian dollars in an Australian motorway project aimed at reducing traffic congestion in the suburbs north of the country’s largest city, Sydney.

The Canada Pension Plan Investment Board said in a statement it was part of consortium that agreed to buy and operate a new toll road located northwest of Sydney. CPPIB said its investment of 525 million Australian dollars ($407.9 million) in the NorthConnex tunnel motorway represented a 25% stake. Its consortium partners include two Australia-based entities, Transurban Group and Queensland Investment Corp.

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The project is designed as a 5.6-mile tunnel in northern Sydney, which is Australia’s largest city, and would link two main highways. Construction is scheduled to begin in early 2015 and is expected to be completed in 2019.

CPPIB manages $184 billion in assets.