Tata Realty India looking to buy SBI-Macquarie’s road assets

Tata Realty & Infrastructure, India, is in advanced talks with a private equity fund managed by Australia’s Macquarie Group and State Bank of India to buy two road assets, more than doubling its investment in three years, reported The Economic Times.

SBI-Macquarie Infrastructure is looking to sell road assets it purchased in 2013. These include the Farukhnagar-Jadcherla highway in Andhra Pradesh and Trichy Tollway, a portion of National Highway 45 that connects Chennai and Tiruchirappalli.

The infrastructure fund of Indian and Australian banks is expecting a total enterprise valuation of Rs.1,000-1,200 crore (US$ 154 Million) . The deal is expected to be concluded in a few weeks

If successful, the fund will make more than two-fold return or a 30% internal rate of return from these investments, which would be one of the highest returns in infrastructure – a sector often hobbled by bureaucratic hurdles, project unviability and a paucity of funds. (The Economic Times)

Tata Realty and Infrastructure (TRIL) was set up in 2007 to pursue opportunities in the real estate and infrastructure sectors. The company is a wholly-owned subsidiary of Tata Sons, the holding company of the Tata group, and is committed towards developing the nation by building world-class real estate and infrastructure.