Cube Highways Trust Acquires Key J&K Assets Worth Rs 4,185 Crore

Cube Highways Trust has acquired two highway assets in Jammu and Kashmir from the National Infrastructure Investment Fund with an enterprise value of Rs 4,185 crore. The Quazigund Expressway and Athaang Jammu Udhampur Highway ensure secure cash flows through fixed annuity payments from NHAI.

Cube Highways Trust has successfully finalized the acquisition of two critical highway assets in Jammu and Kashmir, amounting to Rs 4,185 crore, as announced on Thursday. These assets, acquired from the National Infrastructure Investment Fund, signify a notable expansion for the trust's portfolio.

The acquired assets span nearly 80 kilometers. Among them is the Quazigund Expressway, renowned for being one of India's longest bi-directional tunnels, and the Athaang Jammu Udhampur Highway, a crucial route linking Jammu and Srinagar. With over six years of residual concession life remaining, these assets offer stable cash flows derived from NHAI's fixed semi-annual annuity payments.

CEO Vinay C Sekar of Cube InvIT highlighted that the transaction is poised to significantly boost net distributable cash flows by Rs 2.3 per unit annually over the next five years. Backed by a diverse investor base, including I Squared Capital and Abu Dhabi Investment Authority, Cube Highways Trust is well-positioned for sustainable growth.

(With inputs from agencies.)