The fund, which is managed by CMB-Prime Administradora General de Fondos SA, will pay €93.8 million (US$105.6 million), including debt linked to the concession.
Sacyr Concesiones will own 51% of the concession company that will build the highway between Ovalle and La Serena and operate it for 30 years. The construction investment is expected to be €176 million (US$198 million).
The concession includes works for improving the current 86 km section of the road linking the two cities by adding an additional lane. The new highway means the current road will have two lanes along its entire length, including the Las Cardas ascent, a 17 kilometer bypass and U-turn points every 5 kilometers. The works include a new connection towards La Serena by the Las Torres avenue in Coquimbo and road improvements in the Pan de Azúcar sections of Coquimbo and of Recoleta (Ovalle).
This transaction forms part of Sacyr Concesiones' strategy to open up its concessions to partners, thus maximizing asset profitability and raising capital to undertake new concession projects (greenfield).
Sacyr Concesiones Chile currently manages an investment of US$2.3 billion through 7 public works concession contracts with committed equity of 400 million dollars. The concession contracts currently under construction are: La Serena-Vallenar (187 km); La Serena- Ovalle (85 km); Accesos a Iquique (80 km); Concepción-Cabrero (103 km); Américo Vespucio Oriente (9 km), Antofagasta Hospital (671 beds) and the Vallenar-Caldera section (227 km).