Three of Canada’s largest pension fund managers said on Friday that they have agreed to acquire Skyway Concession Company LLC (SCC), which manages, operates and maintains the Chicago Skyway toll road, for a sum of $2.8 billion.
The three funds, the Canada Pension Plan Investment Board; OMERS; and the Ontario Teachers’ Pension Plan, will each own a 33.33 percent interest in the asset that is being by SCC under a concession agreement that runs until 2104.
Each of the three Toronto-based pension fund managers will contribute an equity investment of about $512 million toward the deal that remains subject to regulatory approvals.
The Chicago Skyway, a 7.8-mile toll road is the only toll highway in the state of Illinois not operated by the Illinois Toll Highway Authority. SCC was awarded operation rights on the toll road in January 2005 for $1.83 billion.
“Skyway represents a rare opportunity for us to invest in a mature and significant toll road of this size in the U.S.,” said Cressida Hogg, CPPIB’s head of Infrastructure, in a statement.
Photo of Chicago toll road courtesy of Suzanne Tucker/Shutterstock.com.