Canada's OMERS Infrastructure picks 22.4% stake in IndInfravit Trust

Canada-based OMERS Infrastructure has picked a 22.4% stake in IndInfravit trust for a consideration of Rs 870 crore, the fund said in a media statement.  OMERS' investment in the infrastructure investment trust (InVIT) marks the fund’s first infrastructure investment in India.  

IndInfravit holds a portfolio of five operational toll road projects – namely- Krishnagiri Thopur Toll Road, Western Andhra Tollways,  Krishnagiri Walajahpet Tollway, Devihalli Hassan Tollway  and Beawar Pali Pindwara Tollway. The five projects were constructed and initially operated by L&T Infrastructure Development Projects (IDPL). L&T IDPL is the sponsor for IndInfravit.

“IndInfravit is a platform well placed to play a key role in the future through additional investments in the road infrastructure in India,” OMERS said in its statement. OMERS Infrastructure invests globally in infrastructure assets on behalf of OMERS, the benefit pension plan for municipal employees in the Province of Ontario, Canada.

OMERS Infrastructure, in its statement, also added it will look for future investment opportunities in India. “Our investment in IndInfravit aligns with our strategy to diversify our portfolio and generate value for OMERS plan members. At the same time, we will participate in the expansion of the Indian economy by investing into crucial infrastructure,” said Bruce Crane, managing director, who leads OMERS Infrastructure in Asia. He further added, “We look forward to working constructively with the other unit-holders, management and all local stakeholders to grow this platform in the coming years.”

L&T IDPL concluded a private listing for its Infrastructure Investment Trust (InvIT) named IndInfravit in May last year, which saw investments from Canada Pension Plan Investment Board, Allianz Capital Partners and other financial institutions. Analysts point out the privately listed InvIT has outperformed the two public listed InvITs which are trading below listing price.

Ambit acted as financial adviser to OMERS Infrastructure.