KKR, NIIF, Cube, Sekura eyeline content in the South
Established in 2009, the 90 km Navayuga Udupi Toll Road covers the Kundapur-Surathkal and Mangalore-Kerala border sections on NH17, connecting Panvel with Kochi. The project has a franchise term of 25 years from September 2010. The proposed agreement is expected to value the project at ₹1,200 crore.
The Thrissur Expressway owned by KMC Constructions is a dedicated vehicle driven to complete the 28 km stretch from Thrissur to Vadakkanchery in Kerala. KMC Infratech holds about 90% of the shares in TEL and China Railway Corporation 18 Group Corporation (CR18G) holds 10% of the balance. Equirus Capital is advising KMC to sell this asset. Sources say SPV is expected to have a valuation of 800 crore.
Last year, India Revival Fund – driven by Piramal Enterprises and Bain Capital Credit – invested ₹555 crore ($75 million) in Thrissur Expressway to restructure TEL’s existing debt and for last mile financing to enable completion of the project.
Gayatri Group-owned HKR Roadways received a 25-year concession for the four-lane toll highway project of the existing Hyderabad Karimnagar Ramagundam section of Highway One (SH1) in 2014. Last year, the Situational Fund especially Kotak (KSSF) has acquired a 74% stake in HKR Roadways, which has become a non-performing asset, for ₹715 crore. The HKR payment review also includes a one-time payment to finance the debt with all lenders. KSSF is looking for a valuation of ₹1200 crore.
Earlier in 2020, Navayuga sold two of its road properties – Navayuga Dhola in Assam and Navayuga Dibang Infra in Arunachal Pradesh – to Sekura Roads for $140 million.
KKR, Edelweiss The spokesperson declined to comment while the letters to Cube, Kotak, KMC and Navayuga did not provide any response.
U.S. private equity firm KKR entered India’s highway sector last year by purchasing the entire share of Global Infrastructure Partners (GIP) in Highway Concessions One (HC1). and seven highway properties with a total length of 487 km. In August, KKR India launched the Road Infrastructure Investment Trust (InvIT).
NIIF Master Fund’s proprietary road platform, Athaang Infrastructure, owns four road assets including Shapoorji Pallonji Group’s 64.5km Jammu Udhampur Highway for $290 million.
Street properties generating sales worth 20,700 crore were blocked for monetization, it said. Icra in a report last year. The road M&A deals over the past three years (CY2019-2021) were mainly driven by developers’ intention to monetize operating assets to unlock capital. The capital generated from the sale has allowed developers to bid on new projects, reduce debt or improve their liquidity positions, it said.
Over the past three years, a total of 30 properties were sold for a total project cost of 35,988 compared to 52 properties sold in CY2015-CY 2018 for a total project cost of 37,019.