Infrastructure Yield Plus, a platform managed by Edelweiss Alternatives, has signed definitive agreements with Larsen & Toubro Limited (L&T) and Canada Pension Plan Investment Board (CPPIB) to acquire 100% equity stake in L&T Infrastructure Development Projects Limited (L&T IDPL) for an enterprise value of around Rs 6,000 crore ($725 million).
The portfolio comprises eight roads and one power transmission asset in India, spanning 4,900 lane-kms and 960 ckms, respectively.
Following this acquisition, the infrastructure platform will scale up to 26 assets with cumulative annual revenue of nearly Rs 2,700 crore. The platform will be a diverse mix of power transmission & substations, renewables and highway assets spread geographically.
Sreekumar Chatra, Managing Director, Infrastructure Yield Plus, said, “These assets have a proven track record of operations, are geographically dispersed and have long residual life, which is consistent with our investment strategy. We believe our asset management and operating capabilities, together with that of L&T IDPL, will help scale up this platform.”
Subahoo Chordia, Head – Infrastructure Funds, Edelweiss Alternatives said, “Asset monetization and recycling capital holds the key to value creation and development in Infrastructure. We will continue to provide solutions to construction companies and developers to recycle capital to fund their growth. On completion of this acquisition, there will be a high-quality diversified infrastructure portfolio of 26 assets across 13 states, making us a leading infrastructure investor in India.”
Edelweiss Alternatives has around Rs 9,500 crore of infrastructure assets under the infra fund. It focusses on investing in infrastructure sectors such as power transmission, renewable power, and highways among others. It is amongst the largest yield focused infrastructure strategy in India with capital commitments from both domestic and global investors.
Edelweiss Alternatives that has an AUM of around $5.5 billion focuses on providing credit and yield opportunities to global and domestic investors such as pension funds, insurance companies, large family offices and ultra-high net-worth individuals, across performing credit (corporate and real estate), special situations and infrastructure yield.