CalPERS, the Canada Pension Plan Investment Board and other large funds from around the world are lining up to bid on an Indiana toll road that filed for bankruptcy last month.
The toll road is operated by a private company, ITR Concession Co LLC.
From Reuters:
The interest in the asset shows that infrastructure investors have not been fazed by the failure of one of the largest privatisations of U.S. infrastructure, even though any deal is expected to come at a significant discount to its original value.
Canada Pension Plan Investment Board (CPPIB) has teamed up with Ferrovial SA’s toll road operator Cintra and Canadian investment manager Brookfield Asset Management to make an offer, the people said this week.
Australia’s Hastings Funds Management has partnered with the California Public Employees’ Retirement System (Calpers) and Italian toll road operator Autostrade Meridionali SpA , the people said.
Spanish infrastructure operator Abertis Infraestructuras SA has teamed up with Borealis, which is the infrastructure investment arm of the Ontario Municipal Employees Retirement System, the people said. Australian infrastructure fund manager IFM Investors is also leading its own consortium, the people added.
The composition and number of the consortia could still change, the people said. Alberta Investment Management Corporation (AIMCo) and Abu Dhabi Investment Authority (ADIA) have considered joining the race but have yet to make a decision, some of the people said.
Sources told Reuters that the price tag will likely wind up somewhere between $4 billion and $5 billion.
Indiana leased the toll road out to ITR Concession Co for 75 years in 2006. In return, the state received $3.8 billion.