Australia-based Macquarie Asset Management (MAM), the world’s largest infrastructure asset manager, is set to sell its largest portfolio of nine national highway stretches in India, valued at approximately $2 billion. The sale process, which will commence in early 2025, follows MAM’s 2018 acquisition of these assets from the National Highway Authority of India (NHAI). The portfolio spans 648 kilometers of national highways in Andhra Pradesh (AP) and Gujarat, offering a long concession period of 30 years—one of its major attractions for prospective buyers.
MAM initially acquired these roads for Rs 9,681 crore, which was 1.5 times higher than the base price set by NHAI during the first Toll-Operate-Transfer (ToT) auction in 2018. This auction saw competition from firms like Brookfield, IRB, and Roadis-NIIF. The toll income for the portfolio in FY23 was Rs 915 crore, with a 12% growth compared to the previous year, driven by higher toll rates and moderate traffic improvements. The portfolio is largely concentrated in six stretches of the Golden Quadrilateral in AP, connecting Kolkata and Chennai, which have high potential for traffic growth due to the presence of industrial clusters and ports, including Visakhapatnam, Kakinada, and Krishnapatnam. The remaining stretches in Gujarat connect key ports such as Kandla, Mundra, and Porbandar.
MAM’s portfolio includes nine special purpose vehicles (SPVs), such as Siddhantham Tollway, Diwantham Tollway, and Ankapalli Tollway. The firm has a track record of substantial investments in India, including toll roads and renewable energy. It recently made its first road acquisition in five years with the purchase of the BSCPL Aurang Tollway project in Chhattisgarh for Rs 1,600 crore. Macquarie’s decision to sell comes amid a growing trend of infrastructure monetization, with other firms like Brookfield Asset Management and the National Investment and Infrastructure Fund (NIIF) also divesting road assets. MAM, which has over $600 billion in assets under management, is seeking to explore new opportunities in energy transition, digital infrastructure, and real estate in India. The firm, which has already invested $3.5 billion in the country since 2009, plans to deploy more capital in the coming years, capitalizing on India’s growing economy and infrastructure opportunities. The sale of MAM’s Indian highway portfolio could attract significant interest from global investors, following similar moves by other infrastructure funds in the region.