A consortium of DIF Infrastructure IV, HICL Infrastructure and Canada’s Northleaf Capital Partners has agreed to acquire Brisa’s Northwest Parkway in Colorado.
The three investors are acquiring a 33% stake each of the toll road, which is located in the Denver metropolitan area. They have agreed to pay USD 166m each for the asset, (almost USD 500m in total) to Brisa, a Portugal-headquartered highway operator that is owned by infrastructure fund Arcus.
This is DIF’s and HICL’s first transport infrastructure investment in the US, the two companies said in two separate statements on 2 December.
Financial close is expected in the first half of 2017. HICL and DIF will use equity to fund the acquisition, it is understood. HICL’s portion will be funded by cash and drawing from the group’s revolving debt facility.
Northwest Parkway has 90 years left on its 99-year concession to operate and maintain a 14km section of the beltway system extending around Denver.
The toll road started operations in 2003 and is linked to several toll and non-toll highways including E-470, I-25, US 36 and US 287. The grantor is the Northwest Parkway Public Highway Authority.
Brisa received second round bids for the asset during November.
Alongside InfraRed Capital Partners-managed HICL/Northleaf Capital Partners, other potential bidders included Globalvia and PSP Investments-owned Roadis.
Back in 2007, a consortium comprising Brisa and Brazil’s Companhia de Concessoes Rodoviarias reached financial close on the acquisition of Northwest Parkway. The deal was worth USD 603m at the time.
Moelis (financial) and Kirkland & Ellis (legal) are understood to be advising Brisa on the current deal. It is also understood that Norton, Rose, Fulbright is advising the buyers and that Greenberg Traurig serves as investors’ counsel.