Aberdeen Asset Management has formed a joint venture with South African-listed construction firm Group Five to invest in toll road concessions across the world.
The asset manager has paid Group Five €43 million for a 49.99 percent stake in Intertoll Capital Partners, a newly-formed company seeded with four PPP assets from Group Five’s European toll road operator and developer subsidiary Intertoll Europe.
Intertoll Capital Partners now holds a 15 percent stake in Gdansk Transport Company, the concessionaire of both phases of the A1 motorway project in Poland. The road recently received fresh investment from First State, DIF and Swiss Life in two deals worth a total of €288 million.
It has also been seeded with a 10 percent share in Mecsek Autopalya Consortium, operator of Hungary’s M60 motorway, financed in 2007 for just over €1 billion. The project’s other partners include John Laing, Strabag and Colas.
Also in Hungary, the joint venture’s company has taken Intertoll Europe’s 12.67 percent share in M6 Duna motorway consortium. Intertoll, Aberdeen Asset Management and EBRD had already invested in the project last December.
Group Five said the value of its stakes in these four projects stood at €68.4 million, with Aberdeen’s purchase representing an 11 percent premium on the value.
“The transaction creates a strategic alliance between Group Five and [Aberdeen] to support the growth of the company’s existing PPP business,” it added. “The transaction will enable Group Five to source and participate in further attractive global concession assets, with the potential to procure new O&M roles in the future, without having to solely invest large amounts of capital.”
The closing of the deal remains dependent on approval from the EU, Polish and Hungarian authorities.