Actis merges 11 India road assets into $1 billion trust

Actis LLP has consolidated 11 road assets from two of its funds into an infrastructure investment trust valued at approximately $1 billion. The assets, previously held in Actis Long Life Infrastructure Fund 1 and 2, have now been brought together under the NXT-Infra Trust, according to Sumit Sen, the managing director of long life infrastructure at Actis.

Following the merger, Actis' stake in the trust has decreased from 86% to 71%, with the remaining shares held by domestic investors. The private equity firm's decision to raise ₹1,180 crore from investors has contributed to the trust's current valuation.

India's growing appetite for road assets, which offer regular revenue, has led to increased interest from infrastructure funds and other long-term investors. Recent acquisitions in the sector include Cube Highways' purchase of HKR Roadways, a 206-km toll road in Telangana, for ₹1,650 crore, and Vinci Highways' acquisition of Safeway Concessions' nine toll roads in Andhra Pradesh and Gujarat for $1.7 billion.

Macquarie Asset Management Pty has also recently invested in a toll-road operator, Maple Infrastructure Trust, while KKR-backed Vertis Infrastructure Trust is considering buying Megha Engineering and Infrastructure Ltd's road assets for $800 million. Adrian Mucalov, the managing director and head of long life infrastructure at Actis, believes there is significant potential in India's infrastructure sector, supported by established regulatory frameworks, which gives confidence in taking a long-term view of the market.