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.

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.