3i Group’s European infrastructure projects fund has invested €70m for an 80% stake in a Spanish motorway project.

The manager said its €456m 3i European Operational Projects Fund (3i EOPF) is buying the stake in Sociedad Concesionaría Autovía Gerediaga Elorrio (AGESA), the project company for the Gerediaga – Elorrio motorway PPP.

The project is a concession for the design, build, finance, maintenance and operation of the N-636 motorway from Gerediaga to Elorrio, which is located 50km southeast of Bilbao.

The 30-year concession was awarded in May 2012, became operational in August 2016 and will run until May 2042.

It is comprised of the newly built 6.4km Gerediaga-Elorrio carriageway, and the pre-existing 2.8km Elorrio bypass.

Overall, the project includes nine viaducts, two bridges, one underpass, one overpass, and the Gaztelua and Axtondo tunnels.

Stephane Grandguillaume, partner in charge of origination for the fund, said: “This investment is a great fit for 3i EOPF and offers long-term cash flow visibility as well as geographic diversification in Western Europe.

“The project has had good operational performance to date and will greatly complement the Fund’s existing portfolio. It provides our investors with an attractive, low-risk yield profile and builds on 3i’s track record in motorways.”

3i EOPF, which is managed by 3i’s infrastructure team, focuses on France, the Benelux, Germany, Italy and Iberia. It targets a wide range of sub-sectors, primarily social infrastructure and transportation, but also telecoms and utilities.