Australian toll-road operator Transurban is to sell half of its stake in three express lanes and other projects in the USA’s Greater Washington area to three pension funds for US$2.1bn (£1.5bn).
According to Reuters, under the deal, AustralianSuper will own 25% of the Transurban Chesapeake assets, while Canada Pension Plan Investment Board (CPP Investments) and UniSuper will hold stakes of 15% and 10%, respectively. The deal also includes a potential earn-out of up to US$72m (£53m) between 2024 and 2026.
The three express lanes are a connected network of dynamically tolled lanes on Interstate highways 495, 95 and 395, key arterial roads in the Greater Washington area.
The 22km-long 495 express lane opened in 2012 and operates on a portion of the Capital Beltway. The 50km-long 95 express lane opened in 2014 and is a reversible lane on Interstate 95 in Northern Virginia. The 13km-long 395 express lane opened in 2019 and is a reversible lane operating on Interstate 395 in Northern Virginia.
“This transaction realises significant value for security holders, while enabling accelerated growth in North America and Australia, where we see a number of opportunities starting to materialise,” Transurban CEO Scott Charlton said in a statement.
In addition to the asset acquisition, the new investors in Transurban Chesapeake will have exclusive development rights to invest alongside Transurban on future brownfield and greenfield growth opportunities in the Commonwealth of Virginia, State of Maryland and Washington DC, as well as enhancements to existing concessions.
The transaction is expected to be completed by the end of 2021.
