Singapore-based Cube Highways and Infrastructure, a subsidiary of I Squared Capital, has entered an agreement with Dilip Buildcon to acquire five road projects in India.

The under-construction road assets are within the Maharashtra, Telangana and Odisha states.

These hybrid annuity model (HAM) projects cover around 1,200km of highways.

Following the project, the company’s portfolio will have 18 projects covering more than 6,000km of lanes on highways across India.

I Squared Capital managing partner and Cube Highways director Gautam Bhandari said: “The strong operating and management capabilities of the Cube Highways team have made the company the partner of choice for road developers in India.

“Following this transaction, Cube Highways will have nine hybrid annuity projects with a total of 2,015 lane kilometres of roads.

“We continue to seek partnerships with quality developers under the hybrid annuity model to diversify the portfolio with both availability and demand-based revenue.”

Hybrid annuity models are a combination of EPC (engineering, procurement and construction) and BOT (build, operate, transfer) models.

Under the HAM project, the National Highway Authority of India contributes towards 40% of the cost, with the remaining spread across regular annuity payments over 15-years of operations.

The transaction is subject to the completion of the necessary lender and regulatory approvals.

In May, Cube Highways reached an agreement to acquire a 39% stake in Ghaziabad-Aligarh Expressway, an associate of Bharat Road Network (BRNL).

In February, the company acquired a hybrid annuity model (HAM) project in the Indian state of Tamil Nadu. The deal gives Cube Highways the rights to construct and operate approximately 160km of lanes on highways across the state.