IFM Investors buys ITR Concession for $5.725 bln

IFM Investors said Wednesday it closed its 100 percent by of ITR Concession Company LLC for $5.725 billion. Financial terms weren’t announced. ITR Concession operates the Indiana Toll Road.


NEW YORK–(BUSINESS WIRE)–IFM Investors today announced the completion of IFM Global Infrastructure Fund’s previously announced acquisition of 100 percent of the equity in ITR Concession Company, LLC (ITRCC), which operates the Indiana Toll Road.

“IFM Investors’ acquisition of ITR Concession Company is consistent with our stated approach to expanding our North American portfolio of assets where we count over 70 U.S. pension funds as our partners,” said Julio Garcia, Head of Infrastructure – North America at IFM Investors. “We believe the Indiana Toll Road is a terrific and complementary addition to our existing portfolio of toll road and other infrastructure investments.”
“Under our stewardship of this vital asset to the region, the Indiana Toll Road will soon undergo a series of improvements designed to enhance the customer experience.”
IFM Investors believes that the planned improvements to the Indiana Toll Road have the potential to create new construction jobs for local workers over the next five years and revitalize one of America’s most important transport corridors.
The Indiana Toll Road is a 157-mile, limited access, divided highway spanning northern Indiana from its border with Ohio to the Illinois state line near Chicago. The ITRCC is required to operate the toll road under a lease agreement that was signed in 2006, and has the exclusive right to collect toll revenues through the term of the agreement, which has a remaining life of 66 years.
The final purchase price for the ITRCC was $5.725 billion, consistent with the purchase price and transaction structure outlined when the planned acquisition was announced. A significant amount of the equity for the investment was supplied by more than 70 U.S. pension funds and the transaction is being financed using what IFM Investors views as a prudent capital structure that includes debt with maturities as long as forty years.
The investment becomes the thirtieth infrastructure asset in IFM Investors’ current portfolio. It is IFM Investors’ second investment in North American toll road infrastructure in 2015, and the fourth toll road in IFM’s infrastructure portfolios.
The Indiana Toll Road’s operating history demonstrates a long-standing linkage to economic growth. Operational since 1956, the toll road is a major freight corridor serving a large, mature, and industrially-developed regional economy. The road is the only multi-lane, non-stop route between Chicago and the Ohio Turnpike, and as such is a critical component of the Midwest and Northeast transportation and logistics networks.
About IFM Investors:
IFM Investors is a uniquely-structured global fund manager with USD 43 billion under management as of 31 March 2015. Established over 20 years ago and owned by 30 major pension funds, IFM Investors’ interests are deeply aligned with those of its investors. Investment teams in North America, Australia and Europe manage institutional strategies across infrastructure (equity and debt), debt investments, listed equities and private capital. IFM Investors is committed to the United Nations supported Principles for Responsible Investment and has been a signatory since 2008. IFM Investors has offices in six locations; Melbourne, Sydney, New York, London, Berlin and Tokyo. For more information please visit