YIELD+ acquired two annuity road assets from Navayuga Group. Credit: Bruno Bergher on Unsplash.

Edelweiss Infrastructure Yield Plus (YIELD+), an alternative investment fund (AIF) managed by Edelweiss Alternative Asset Advisors (EAAA), has announced the acquisition of two annuity road assets from Navayuga Group.

Under the deal, YIELD+ acquired Navayuga Dhola Infra Projects in Assam and Navayuga Dibang Infra Projects in Arunachal Pradesh from Navayuga Road Projects (NRPPL), a subsidiary of Navayuga Engineering Company.

The investment fund made the acquisition along with its portfolio company Sekura Roads (SRL).

The financial details of the deal have not been disclosed by the companies.

Edelweiss Global Investment Advisory Deputy CEO Hemant Daga said: “Acquiring operating infrastructure assets provides impetus to the revival of the sector by helping construction companies to release capital and de-lever, enabling them to commence new projects, which contribute to nation building and is becoming the core model to meet India’s infrastructure capital requirement.”

YIELD+’s SRL primarily focuses on the acquisition of operating road assets, and with the latest acquisition, the company is expected to become one of the leading asset owners and investors in the road sector in India.

Navayuga Group CFO Sachin Bhansali said: “Navayuga group is looking to de-leverage its balance sheet and asset monetisation is a critical component. This transaction will significantly ease out the debt position of the group and help free up cash.”

Last June, Edelweiss Infrastructure Yield Plus fund (EIYPF) is said to have planned to acquire two road assets from Navayuga Group for almost $150m.

Two sources familiar with the development told Livemint: “The two road assets that Edelweiss is acquiring are based in the state of Assam and are collectively valued at close to $150m.

“Both the assets are annuity roads and have been operational since the last two years.”