Igneo Infrastructure Partners is acquiring the Auto-estrada do Algarve Via do Infante (AAVI) and Auto-estradas Norte Litoral (AENL) road concessionaires in Portugal from CVC DIF.
The deal, which represents the 11th acquisition for Igneo’s European Diversified Infrastructure Fund III, is expected to close in the fourth quarter of the year. Financial details were not disclosed.
AAVI is a concessionaire for the A22 road network between Lagos and Castro Marim in Southern Portugal. This concession is set to expire in May 2030.
AENL is a concessionaire for the A28 and A27 roads, which span the northern coast of Portugal between Porto and Caminha. This concession is set to expire in September 2031.
Hamish Lea-Wilson, partner and head of Europe at Igneo, said: “The add-on acquisition of AAVI and AENL is fully aligned with Igneo’s strategy to acquire high-quality, stable mid-market infrastructure assets.
“We have invested in Portugal over the last 10 years and continue to believe in the country’s future prospects with transportation remaining a key investment area for Igneo.”
CVC DIF, which first invested in the concessions in 2017 and later consolidated its position in 2020, said that Portugal remains an attractive market where it will continue to seek new investment opportunities.
Maria Luisa Castro, managing director at Igneo, said: “We are delighted with this synergetic and value-accretive acquisition of AAVI and AENL in addition to the acquisition of AEDL last year. The networks are critical transport links with long-standing operational track record and stable concession frameworks, and we trust the three assets will benefit from greater diversification and operational synergies.”
Andrew Freeman, partner and head of divestments at CVC DIF, said: “This transaction is a strong example of CVC DIF’s differentiated exit capability – delivering value from mature concessions, in a market where successful realisations require selectivity, preparation and timing.
“It highlights our ability to match divestments with the right long-term owner while continuing to generate distributions for our investors.”
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