North America: Bidders line up for Macquarie’s Canadian highway sale

31 January 2018 - 12:00 am UTC

Canadian and international firms are preparing bids for Macquarie Infrastructure Partners’ (MIP) Autoroute 25 (A25) toll road in Canada, Inframation has learned.

The following companies are understood to be considering bids for the 7.2km automatic tolling highway, according to sources:

– Axium Infrastructure/The Manufacturers Life Insurance Company (Manulife)
– Caisse de dépôt et placement du Québec (CDPQ)/OMERS Infrastructure (Borealis Infrastructure)/CIBC
– Fiera Infrastructure/Northleaf Capital Partners/DIF/Desjardins/Swiss Life
– Globalvia
– InstarAGF Asset Management
– Transurban

A source briefed said that there has been significant interest in the asset in early rounds. Binding bids are due in the second half of March, the source added.

A source at one company that participated in the early rounds said that the company dropped out because the valuation did not align with its objectives and because returns were trading down to “mid-single digits.”

A second source at one of the potential bidding teams described the road concession as a sizable, CAD-denominated asset, while another participant said the asset fit the company’s criteria as it is a demand-risk deal in a congested urban network.

Macquarie Infrastructure Partners (MIP) launched the sale of A25 in November 2017 as the fund reached the end of its lifespan, as reported. Macquarie Capital is the advisor on the process.

MIP won the 35-year P3 concession in June 2007 alongside Kiewit and Parsons and the road has been open to traffic since May 2011. It valued its initial USD 250.3m equity investment in A25 at USD 260m as of 30 June 2012, according to Inframation Deals. The fund in February 2015 closed a USD 316.2m refinancing package for the highway.

The A25 is a 7.2 km toll road between Henri-Bourassa Boulevard in Montréal and autoroute 440 in Laval. It also includes a 1.2km six-lane bridge across Rivière des Prairies.

Read more

 

Macquarie