Asset manager to gain control of six roads and three power projects
MUMBAI, India—Brookfield Asset Management has entered into an agreement to acquire nine infrastructure projects from Indian developer Gammon Infrastructure Projects Ltd.
Brookfield, as well as Core Infrastructure India Fund Pte Ltd., formed the BIF India Holdings Pte Ltd. consortium, which will take control of six roads and three power projects. Reuters has reported the deal is valued at US$85 million.
“The transaction involving 9 projects represent the largest asset sale at one go in the Indian infrastructure industry,” Abhijit Rajan, chairman and managing director of the Gammon Group, said in a statement. “This is reflective of the improved sentiments being demonstrated by foreign investors due to positive approach of the government in the infrastructure space.”
Gammon noted Indian government infrastructure policy changes have resulted in the revival of interest from investors such as Brookfield in the Indian infrastructure sector.
“This transaction represents Brookfield’s first major investment in Indian infrastructure, and provides us a great platform to participate in the Indian growth story over the long term,” Brookfield managing partner for India, Anuj Ranjan, said.