The Canada Pension Plan Investment Board (CPPIB) has strengthened its profile in Chile with the purchase of a 49.99 percent stake in Grupo Costanera, a major toll road operator in Santiago.
CPPIB paid Atlantia Group CLP560 billion ($1.15 billion) for the concern, the $154 billion pension fund manager said in a press statement.
It called the acquisition “an excellent opportunity to expand our infrastructure portfolio in a developing market,” crediting Chile with “strong economic growth…and stable legal and regulatory framework”.
The purchase gave CPPIB a 188-kilometre toll road network in Chile, mostly in urban Santiago. Atlantia Group, a toll road company from Italy, will retain a 50.01 percent interest in Grupo Costanera.
Fast-developing Chile has become a popular market for direct investment in infrastructure.
In December, the C$69 billion Alberta Investment Management Corporation (AIMCo) bought 50 percent of SAESA Group, a Santiago-based electricity distribution and transmission company, from Morgan Stanley Infrastructure.
Brookfield Asset Management, a $150 billion alternative asset manager, acquired in September a 50 percent stake in Tunel San Cristobal and its 46.5 percent holding in Vespucio Norte – both in Chile – from ACS for $285 million.
CPPIB has an C$8.6 billion infrastructure portfolio, representing 5.6 percent of its asset base.
Chile toll road deal for CPPIB
The Canada Pension Plan Investment Board has completed an investment in a major toll road operator in ‘developing market’ Chile. The pension fund manager cited the size and complexity of the transaction.