Canadian Pension Funds Buy Rights to Chicago Skyway for $2.8 Billion

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Three of Canada’s largest pension plans over the weekend bought the rights to operate the Chicago Skyway until the year 2104.

The consortium of pension funds paid $2.8 billion for the lease rights; the Skyway was originally leased by the city to Spain’s Cintra Infraestructuras and Australia’s Macquarie Group in 2005. The cost of that deal was $1.83 billion.

More from the Chicago Sun-Times:

The buyers are a consortium made up by the Canadian Pension Plan Investment Board, the Ontario Municipal Employees Retirement System and the Ontario Teachers’ Pension Plan, according to a joint statement from the three entities. Each will have a 33.33 percent stake in the Chicago deal.

“Skyway represents a rare opportunity for us to invest in a mature and significant toll road of this size in the U.S.,” said Cressida Hogg, managing director and head of infrastructure for the Canada Pension Plan Investment Board.

The Council must approve the sale of the Skyway rights. A spokeswoman for Mayor Rahm Emanuel’s administration declined comment.

The Skyway company reported collecting nearly $80.7 million in revenue from tolls last year, a slight increase from 2013.

[…]

Motorists who use the 7.8-mile-long toll road on the South Side are unlikely to notice any changes as a result of the sale because the schedule of toll increases was laid out in the long-term lease agreement approved by the City Council 10 years ago.

Barring another sale, the pension funds will operate the Skyway for the next 99 years.

 

Photo by bitsorf via Flickr CC License

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