Buyer selected for Brisa’s Northwest Parkway in Colorado

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Buyer selected for Brisa’s Northwest Parkway in Colorado

It has been announced that a consortium, formed by HICL Infrastructure Company Limited, DIF Infrastructure IV and Northleaf Capital Partners, has reached an agreement to acquire a the Northwest Parkway, a toll-road located in the Denver metropolitan area of Colorado, U.S.A.  

The consortium has agreed to acquire a 100% equity interest in the project from Brisa, a Portuguese toll-road operator.

The project is a 99-year concession, signed in 2007, to operate and maintain a 14km section of the beltway system extending around Denver. the project has good traffic history as the road was opened in 2003 and connects with several toll and non-toll highways, including E-470, I-25, U.S. 36 and U.S. 287, providing convenient access to residential and commercial centres in the region. Project revenues are generated by tolls through an all-electronic tolling system. The counterparty to the concession is the Northwest Parkway Public Highway Authority.

Completion is subject to a limited number of conditions and is expected in the first half of 2017. 

The project is DIF’s first transportation infrastructure investment in North America, a sector in which DIF expects considerable growth for the years ahead. 

It is also HICL's first investment in the USA. HICL's share of the consideration is approximately US$166 million, which will be paid at completion, funded by cash and drawing under the Group's enlarged revolving debt facility. The project supports HICL's disciplined investment proposition, which is to produce long-term income for shareholders from a portfolio of infrastructure investments that is positioned at the lower end of the risk spectrum.

The constium was advised by InfraRed Capital Partners Limited.

Tony Roper, Director, InfraRed Capital Partners Limited, said:

"We are delighted to have signed the agreement to acquire a substantial interest in the Northwest Parkway toll-road, which is strategically located in a dynamic region of Colorado, forming part of the ring road around Denver.  When it completes, this will be HICL's first investment in the USA."

Paul Huebener, Partner and Head of DIF Americas, stated:

"Northwest Parkway represents an excellent investment opportunity for our investors. The Project offers a combination of its operational history, significant growth potential and strong downside protection due to the contractual structure and strength of Denver’s economic and demographic factors.”

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