Australian fund manager to acquire Indiana toll road concession

Australian fund manager IFM Investors, on behalf of IFM Global Infrastructure Fund, has paid US$5.7 billion for the bankrupt Indiana Toll Road Concession, a 253-kilometre highway that runs from the border of Indiana and Ohio towards Chicago, giving it exclusive rights to operate and maintain the road for the next 66 years. The road, previously jointly owned by Macquarie and Spanish infrastructure group Ferrovial, went into Chapter 11 bankruptcy in September due to poor traffic volumes and was put up for sal
March 13, 2015 Read time: 2 mins
RSSAustralian fund manager IFM Investors, on behalf of IFM Global Infrastructure Fund, has paid US$5.7 billion for the bankrupt Indiana Toll Road Concession, a 253-kilometre highway that runs from the border of Indiana and Ohio towards Chicago, giving it exclusive rights to operate and maintain the road for the next 66 years.

The road, previously jointly owned by 802 Macquarie and Spanish infrastructure group 4419 Ferrovial, went into Chapter 11 bankruptcy in September due to poor traffic volumes and was put up for sale.

The road spans northern Indiana, from its border with Ohio to the Illinois state line near Chicago, feeding directly into two toll roads at the state lines – the Chicago Skyway in the west and the Ohio Turnpike in the east.

IFM Investors regards ITRCC as an attractive investment for its infrastructure portfolio. Julio Garcia, head of Infrastructure – North America at IFM Investors said: “We believe this is a unique opportunity to invest in a high quality United States transportation infrastructure asset. IFM Investors views the Indiana Toll Road as an essential operating asset for its strategic geographical position, long concession duration and inflation and GDP-linked tolling regime. ITR is strategically important to the North American transportation network. We are committed to maintaining the asset to a high standard that provides maximum availability and usability for customers.”
Charging, Tolling & RUC

For more information on companies in this article

Related Content

  • UK region wins funding for better bus routes
    July 24, 2012
    A major project by Siemens to upgrade over 160 traffic signal controllers across Tyne and Wear is set to go ahead following the award of Better Bus Area (BBA) funding from the Department for Transport to The Tyne and Wear Integrated Transport Authority, in the north east of England.
    Read More
  • New markets for travel information apps
    November 26, 2013
    Purpose-designed travel information apps are emerging to support the real estate market in the US – and potentially more widely – in a major diversification away from the conventional automotive and navigation device sectors. In July 2013, Washington State-based Imprev, which develops web-based marketing support aids for realtors, announced its App Generator. Claimed as an industry first, this enables property businesses to create their own branded mobile apps to give away as marketing tools to potential
    Read More
  • Investing in ITS: Show us the money
    April 8, 2022
    The ITS industry is currently attracting a lot of interest from private equity and venture capital providers. Adam Hill asks some of the people who have their eyes on the market what makes it such a good bet
    Read More
  • US toll roads stable for 2014, says Fitch
    December 18, 2013
    Within a broader review of US transport infrastructure securities, including ports and airlines, Fitch Rating analysts say the recent slow growth in aggregate traffic is likely to continue but that many established toll roads look financially solid because of their pricing power - tolls that have been well below revenue maximising levels. Their pricing power has been somewhat reduced, Fitch says, by strong increases in toll rates on many toll roads, which mean they have less scope for big increases in to
    Read More

Highlighted Content