IndInfravit Trust has reached an agreement to buy nine operational road projects from Sadbhav Infrastructure Project for approximately $959m.

Under the agreement, Sadbhav will receive the proceeds in cash and allotment of units of IndInfravit.

The roads portfolio with total 2,619 lane kilometres includes seven toll roads and two annuity roads. Roads are in Gujarat, Karnataka, Maharashtra, Rajasthan, and Telangana.

IndInfravit, an infrastructure investment trust ((InvIT) floated by L&T Infrastructure Development Projects, currently manages a portfolio of five operational toll road concessions.

Other unit holders of IndInfravit include Allianz Capital Partners, Canada Pension Plan Investment Board (CPPIB), as well as OMERS Infrastructure.

IndInfravit said that the acquisition of Sadbhav’s road assets is part of its strategy to buy highway projects in India and expand its existing business.

Following completion of the transaction, Sadbhav Infrastructure will hold not more than 10% units in IndInfravit.

LTIDPL IndvIT Services CEO J Subramanian said: “The proposed acquisition of Sadbhav’s completed and revenue generating road assets by the IndInfravit Trust is a landmark deal, which we anticipate will generate significant economic benefits to both parties.

“Today’s announcement serves as a clear expression of our intentions to actively pursue growth and expand the IndInfravit Trust’s revenue base.

“Further, the InvIT platform clearly underlines how India remains an attractive destination for serious and committed long-term investors, and we look forward to more such transactions in the near future.”

Once the proposed transaction is completed, Sadbhav Infrastructure will continue to manage three operational road projects and 12 under-construction projects under the hybrid annuity model.