KNR Walayar Tollways in India acquired by Cube Highways
Cube Highways III, a portfolio company of I Squared Capital through its ISQ Global Infrastructure Fund II, has acquired 100 percent of KNR Walayar Tollways Private Limited (KWTPL), an operating toll road in the state of Kerala, India, from KNR Constructions Limited.
Including this transaction, and assets under various stages of closing, the Cube Highways group has a portfolio of 27 highways with nearly 8,400 lane-kilometres across India.
KWTPL operates a 53.5-kilometer, four-lane toll road connecting Walayar, on the border of the southern Indian states of Tamil Nadu and Kerala, and Vadakkancherry in Kerala. Awarded as a 20-year concession in 2012 for strengthening and widening a two-lane highway to a four-lane configuration, the project has been operational since May 2015.
Forming a critical part of National Highway-47, KWTPL lies on the arterial entry route into Kerala, connecting the major cities of Salem, Erode and Coimbatore in Tamil Nadu with Thrissur and Kochi in Kerala.
This transaction follows the acquisition of Farakka-Raiganj Highway last week and is the fourth asset acquisition of a highway from the KNR group.
“Despite the challenges of the Covid-19 pandemic, both parties worked constructively to restructure the transaction to achieve a win-win outcome for both parties,” said Gautam Bhandari, Director of Cube Highways and Managing Partner of I Squared Capital. “As a repeat transaction with KNR Group, Cube Highways has once again demonstrated that it is the partner of choice for leading road construction companies and has cemented its position as the preeminent owner-operator of Indian Highways.”
KWTPL expands Cube Highways’ geographic presence to South India and diversifies the traffic flows for the portfolio. The road has seen a healthy recovery in commercial traffic between Tamil Nadu and Kerala following the lockdown.
Cube Highways and Infrastructure III Pte. Ltd., is a Singapore-based company investing in road and highway projects, along with other select infrastructure sectors in India. Cube Highways is an independent, professionally managed platform leveraging the extensive transportation experience of its management and execution advisory teams.