DIF-led team wins €1.3bn German road PPP

The asset manager, which recently launched a new core infrastructure fund, is teaming up with two developers to build a stretch of the A6.

ViA6West, a consortium led by DIF, has been awarded a contract to oversee the €1.3 billion extension of Germany’s A6 highway, from planning through to construction and operation.

DIF has a 50 percent stake in the consortium, with developers Hochtief and Johann Bunte Bauunternehmung respectively owning 30 percent and 20 percent.

The group will build 25.5km of six lanes of new highway and revamp the 1.3km Neckartal bridge between Heilbronn/Untereisenheim and Neckarsulm. The project includes the operation and maintenance of the A6 over a total length of 47.2km.

Once complete, the new stretch will allow the A6 to connect the Wiesloch/Rauenberg junction to the Weinsberg motorway junction in Baden-Württemberg. Construction is set to cost €600 million, with the project operated on an availability basis thereafter. Financial close is expected in December, with construction work due to kick off in 2017 and complete in the summer of 2022

DIF will fund the project via its fourth flagship vehicle, which closed last September on €1.15 billion. Last month, the firm also used the fund to buy the 26MW Wadlow Wind Farm in the UK from 3i Infrastructure.

Also in September, it emerged that DIF had launched a new core infrastructure fund focused on mid-market assets. A source with knowledge of the matter told Infrastructure Investor then that the firm was looking to collect a few hundred million euros for the vehicle.