US asset manager pays €588m for stake in Florida’s I-595

Teachers Insurance and Annuity Association of America has bought a 50% stake in the road concession from ACS. Florida’s I-595 was the first infrastructure deal in the US backed by availability payments and will be in private hands until 2044.

Teachers Insurance and Annuity Association of America (TIAA), a US asset manager with some $453 billion of assets under management, has bought a 50 percent stake in Florida’s I-595 road concession from Spanish developer ACS.

TIAA paid ACS €588 million (enterprise value) to acquire half of the first US infrastructure deal backed by availability payments. Availability payments are public contributions paid in exchange for making the asset available in good condition, which means the private partners are not exposed to traffic risk.

ACS still owns the remaining 50 percent of the €1.2 billion project, which will be in private hands until 2044. Florida awarded the road concession, which has a five-year construction period, to ACS in 2008. The Spanish developer first announced that it was looking to sell a stake in the I-595 – which averages some 130,000 vehicles per day – in late August. 

Since then, ACS has also sold two road concessions in Chile to Brookfield Asset Management for €216 million and 11 wind parks for more than €900 million over the course of 2011. The asset sales are part of the developer’s effort to reduce its €9.85 billion debt pile.