The Canada Pension Plan Investment Board (CPPIB), OMERS and the Ontario Teachers’ Pension Plan are investing $2.8bn (€2.6bn) in a US toll road operator.
The three Canadian pension funds are investing in the Skyway Concession Company, which manages, operates and maintains the Chicago Skyway toll road.
The agreement runs until 2104.
CPPIB, OMERS and Ontario Teachers will respectively take a 33.33% interest in the firm, contributing $512m each.
Skywa, a 7.8-mile toll road between downtown Chicago and its south-eastern suburb, is regarded as one of the busiest corridors in the US.
Cressida Hogg, managing director and head of infrastructure at CPPIB, said: “Skyway represents a rare opportunity for us to invest in a mature and significant toll road of this size in the US.
“This investment fits well with CPPIB’s strategy to invest in core infrastructure assets with long-term, stable cash flows in key global markets.”
Ralph Berg, OMERS Private Markets executive vice-president and global head of infrastructure, said Skyway aligned with the pension fund’s strategy of buying assets generating stable, consistent returns.
“Our investment in Skyway also fits with our goal of growing our assets under management in the North American infrastructure space,” Berg said.
Andrew Claerhout, senior vice-president of infrastructure at Ontario Teachers, said the long-dated nature of the concession “closely reflects” the fund’s investment horizon.
“Skyway is a critical asset for the Chicago region that will provide inflation-protected returns to match our liabilities and further diversify our infrastructure portfolio,” he said.
In a major US toll road deal in May, the operating company of the Indiana Toll Road, which went bankrupt last year, was taken over by Australian infrastructure fund manager IFM Investors.
IFM bought all the equity in ITR Concession Company, paying $5.73bn.