KKR recently confirmed the launch of roads infrastructure investment trust, Highways Infrastructure Trust, in India, a press release reported.
“HIT’s launch is a significant milestone for KKR’s India infrastructure strategy as we deepen our presence in the market. Highways and roads play a critical role in driving India’s economic prosperity and connecting its citizens, and we look forward to enabling further infrastructure creation and expansion as transportation demands continue to grow,” Hardik Shah, partner at KKR, said. “With our dedicated platforms across transmissions, roads and renewables in place, KKR is well-positioned to collaborate with sellers in the private markets and the government through the National Monetisation Pipeline on attractive investment opportunities.”
The global investment firm manages more than $40 billion in assets. The establishments collectively manage 33 assets valued at over $3.8 billion across 22 states or union territories across India.
“In Asia Pacific, KKR takes a flexible approach to infrastructure investment and combines local knowledge and capabilities with the firm’s global industry and operational expertise. Globally, KKR’s infrastructure portfolio spans a broad range of sectors,” a recent press release states.
The company’s infrastructure catalog covers the transportation, renewable energy, power and utilities, water and wastewater and telecommunications industries, among various others.
The launch serves as the third InviT based in India, standing alongside India’s first renewable energy InvIT, Virescent Renewable Energy Trust and the India Grid Trust.
“HIT’s launch takes place on the back of growing demand to expand India’s road network, the second-largest globally, as passenger traffic and commercial vehicle traffic continue to increase,” a recent press release states.
HIT’s slate of assets include six roads spanning a total length of 450 kilometers across six states in India, as well as various toll and annuity roads based in Gujarat, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu and Telangana. Since its 2009 Mumbai establishment, the company has made more than 20 investment efforts in India, 20 of which remain active.
India’s road network currently makes up 90% of total passenger traffic and 65% of all goods nationwide.
“In India, KKR sees transportation, renewable energy and electricity transmissions as core to its infrastructure strategy,” the press release continues. “The launch of HIT additionally strengthens KKR’s longstanding commitment to India.”