Latest News | Cube Highways Trust Acquires 2 Highway Assets in J&K from NIIF for Rs 4,185 Cr

New Delhi, Jun 12 (PTI) Cube Highways Trust on Thursday said it has completed the acquisition of two highway assets in Jammu and Kashmir from the National Infrastructure Investment Fund at an enterprise value of Rs 4,185 crore.

The Trust is managed by Cube Highways Fund Advisors Pvt Ltd.

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Cube Highways Trust, in a statement, said the two assets being transferred, Quazigund Expressway Pvt Ltd and Athaang Jammu Udhampur Highway Pvt Ltd, span approximately 80 kilometres and are located in Jammu and Kashmir.

Quazigund Expressway is one of the longest bi-directional tunnels in India, while Athaang Jammu Udhampur Highway is an essential link between Jammu and Srinagar.

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It said these assets have a residual concession life of over six years and are backed by fixed semi-annual annuity payments from NHAI, providing stable and predictable cash flows that are insulated from traffic risks.

"The total Enterprise Value (including cash) of the two assets has been reported at Rs 4,185 crore, subject to all closing adjustments as specified in the SPA," the statement said.

Cube InvIT CEO Vinay C Sekar said this transaction is expected to be accretive to net distributable cash flows by Rs 2.3 per unit annually on average over the next five years.

Cube Highways Trust is backed by a diversified investor base, including I Squared Capital, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), British Columbia Investment Management Corporation, and Abu Dhabi's sovereign investor Mubadala Investment Company.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)