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InfraRed fund nearly invested after Colombia road deal

InfraRed Infrastructure Fund III has committed $970m of equity after its 13th investment in a Colombia road modernisation.

InfraRed Capital Partners has almost fully invested its third infrastructure fund with the purchase of a 50 percent interest in a $610 million Colombia road project.

InfraRed Infrastructure Fund III is now 95 percent invested, with $970 million of equity committed, the fund's manager said. The Colombian road project is its 13 th investment from the fund and is in partnership with construction company Shikun & Binui.

The road project, Perimetral de Oriente de Cundinamarca, is a toll road east of Bogota. The project is a maintenance and improvement consisting of upgrading 148 kilometres of existing roads and constructing around 5 kilometres of new roads. It is scheduled for completion in March 2019.

The Perimetral de Oriente de Cundinamarca modernisation is being funded with project finance debt through a combination of US dollars and Colombian pesos from international and local institutions.

The project is part of Colombia's 4G Road Concessions programme to invest in 40 projects spanning around 8,000 kilometres and requiring around $25 billion of investment. It will be procured using public-private partnerships.

InfraRed's acquisition follows a sale it agreed to last month, handing a 42 percent stake in France's A63 motorway to AXA Investment Managers. Earlier this week, one of InfraRed's investment vehicles, HICL, was part of a consortium acquiring a toll road in Colorado. HICL, along with DIF and Northleaf Capital Partners agreed to pay $498 million for the Northwest Parkway, each taking a 33.3 percent stake in the project.