The deal includes an immediate cash payment of Rs 563 crore
Canada's Brookfield Asset Management made its first significant investment in Indian infrastructure, buying six road and three power projects on Friday from India's Gammon Infrastructure Projects Limited.
New Delhi: Canada’s Brookfield Asset Management made its first significant investment in Indian infrastructure, buying six road and three power projects on Friday from India’s Gammon Infrastructure Projects Limited.
A consortium composed of Brookfield and the Core Infrastructure India Fund are buying the projects, six of which are operational, said Ambit Holdings, which advised Gammon on the deal.
“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,” Anuj Ranjan, Managing Partner at Brookfield, said.
The deal includes an immediate cash payment of Rs 563 crore and future sums based on certain performance targets being met, Rahul Mody, MD, Ambit Corporate Finance, said.
Recent reforms, including a rule allowing developers to exit road projects two years after completion, have encouraged foreign investors to begin looking at investing in Indian infrastructure again, Mr Mody said. “There is a steady increase in interest. But it needs to be tapped properly and it will take time,” he said.
( Source : reuters )
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