Edelweiss Alternatives acquires 100 per cent stake in L&T infrastructure development projects limited

Apr 13, 2024

New Delhi [India], April 13 : The Infrastructure Yield Plus strategy, managed by Edelweiss Alternatives, has successfully concluded the acquisition of a 100 per cent stake in Larsen & Toubro (L&T) Infrastructure Development Projects Limited (L&TIDPL).
According to a press release, L&T Infrastructure Development Projects Limited, a subsidiary owned 51 per cent by Larsen & Toubro Limited (L&T) and 49 per cent by Canada Pension Plan Investment Board (CPP Investments), boasts a portfolio comprising seven operating roads and one power transmission asset in India.
These assets collectively span approximately 4,400 lane-kilometres of roads and around 960 circuit kilometres of power transmission infrastructure.
With this acquisition, Edelweiss Alternatives' infrastructure platform is set to scale up significantly, encompassing a total of 26 assets.
This expanded portfolio will now include approximately 5,000 lane-kilometres of roads, 1,800 circuit kilometres of power transmission assets, and 813 megawatts peak (MWp) of renewable energy capacity.
The cumulative annual revenue from these assets is estimated to be around Rs 3,000 crores.
Sreekumar Chatra, Managing Director of Infrastructure Yield Strategy at Edelweiss Alternatives, expressed enthusiasm about the acquisition, highlighting the strategic value it brings to their business.
Chatra emphasized the robust track record of revenues and operations of the acquired assets, noting their geographic dispersion and long residual life.
He underscored Edelweiss Alternatives' commitment to creating further value in the portfolio through strong asset management and operational capabilities.
Chatra said, "This acquisition is a significant milestone for our business. These assets have a proven track record of revenues & operations, which are geographically dispersed and have long residual life. With our strong asset management and operating capabilities, we are confident of creating further value in the portfolio, and scaling it up further."
Subahoo Chordia, Head of Real Assets Strategy at Edelweiss Alternatives, emphasized the platform's appeal to a diverse range of investors, including global pension funds, domestic institutions, ultra-high-net-worth individuals (UHNIs), family offices, and corporates.
Chordia highlighted investors' preference for managers with a strong management pedigree, industry experience, on-ground operational teams, sound governance frameworks, and a proven track record of performance.
Chordia said, "Our Real Assets Strategy has witnessed strong interest from across investor segments like global pension funds, domestic institutions, UHNIs, family offices and corporates, indicating preference of LPs to invest with managers having a strong management with decades of industry experience, on-ground presence of the operating team, sound governance framework and a performance track record in the strategy."
He added, "With our strong platform capabilities, we will continue to offer bespoke capital solutions for asset monetization and recycling of capital for Infrastructure developers. With this acquisition, we will have a high-quality diversified infrastructure portfolio of 26 assets across 13 states, making us a leading infrastructure investor in India."
With this acquisition, Edelweiss Alternatives aims to solidify its position as a leading infrastructure investor in India. The platform is poised to offer bespoke capital solutions for infrastructure developers, facilitating asset monetization and capital recycling.
The acquisition aligns with Edelweiss Alternatives' focus on providing high-quality credit and yield opportunities to a wide spectrum of investors, both domestic and global.