I Squared Capital’s Cube Highways and Infrastructure has entered into an agreement to acquire 100% stake in Ghaziabad Aligarh Expressway (GAEPL), an operating toll road located in the Indian state of Uttar Pradesh.

Cube Highways entered the agreement through its portfolio company ISQ Global Infrastructure Fund I.

Financial details of the deal have not been disclosed.

I Squared Capital managing partner Gautam Bhandari said: “We are pleased to add yet another high-quality asset to the Cube Highways portfolio.

“The road has shown a healthy recovery of traffic following the lockdown, underscoring its strategic location in North India. Cube Highways has been the most active investor in Indian roads sector in the last 12 months. and now has unmatched scale and capabilities in the country.”

Part of National Highway 34, GAEPL is said to be an arterial road connecting North to Central India and operates a 126km toll road connecting Ghaziabad with Aligarh.

The road is said to offer a growth potential as it connects major industrial and population centres of North India such as Meerut, Ghaziabad, Aligarh and Kanpur.

Additionally, the deal is expected to enhance Cube Highways’ geographic presence in North India and diversifies the traffic flows for the portfolio.

I Squared Capital partner Harsh Agrawal said: “Indian highways continue to present a significant investment opportunity with strong fundamentals and secular growth trends backed by stable, time-tested regulations.

“We will continue to build the Cube Highways portfolio through disciplined selection of assets and industry-leading operations and maintenance practices.”

Completion of the deal is subject to the fulfilment of certain customary regulatory and lender approvals.

Last September, Cube Highways II announced the acquisition of Farakka-Raiganj Highways Limited (FRHL), a toll road operator in the state of West Bengal, India, from HCC Concessions.

The deal was executed by Cube Highways ISQ Global Infrastructure Fund II for an undisclosed sum.