BENGALURU (Reuters) -India's IndInfravit Trust said on Friday it would acquire five operational road projects from companies owned by Brookfield Asset Management's funds in a deal valued at about $1.2 billion, including debt, as it seeks to expand its road portfolio.
The deal with Canada's Brookfield will extend the infrastructure investment trust's presence into three more states, adding roads spread across 2,400 lane kilometres (kms). It currently has a portfolio of 13 operational road assets with about 5,000 lane kms spread across five states.
IndInfravit's unit holders include Allianz insurance companies represented by Allianz Capital Partners, Canada Pension Plan Investment Board and OMERS Infrastructure.
The transaction is subject to approval from regulatory authorities, lenders and unitholders of IndInfravit.
The Indian government plans to step up spending in the current fiscal year to build public infrastructure and drive economic growth, which will be a boon for infrastructure companies.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Vinay Dwivedi)