Macquarie SBI buys Indian highway from GMR

The joint venture has spent about $38m buying a 74% stake in a 58-km toll road in India. The seller was GMR Group.

A joint venture between Australian investor Macquarie and the State Bank of India (SBI) last week bought a majority stake in GMR Jadcherla Expressways from Indian infrastructure group GMR, the latter announced in a statement.

The deal will see Macquarie SBI pay a total of R$2.06 billion (€28 million; $38 million) for a 74 percent stake in the 58-kilometre Farukhnagar-Jadcherla toll road, in the Indian state of Andra Pradesh. 

GRM will receive an upfront payment of R$1.95 billion with a further R$110 million to be paid “on completion of certain conditions”. The latter were not specified, but GMR did say its 74 percent stake was originally worth R$1.46 billion.

The joint venture’s Macquarie SBI Infrastructure Fund – which raised $910 million from international investors – and the SBI Macquarie Infrastructure Trust – which raised $214 million from Indian investors – are participating in the deal. Both funds target Indian infrastructure, but are separate vehicles managed by separate fund managers. 

Macquarie SBI first invested in a portfolio of roads held by Ashoka Concessions last year. It has, counting the GMR toll road acquisition, completed seven deals out of its Macquarie SBI Infrastructure Fund.

The GMR Group is an Indian developer with interests in 17 power generation assets, nine road concessions and two airports, including a greenfield hub at Hyderabad, and Delhi International Airport, where it built a new terminal.