UBS Asset Management is investing in a Spanish toll road on behalf of its global infrastructure fund.

The UBS International Infrastructure Fund II is to acquire the Autovía del Camino, a 72.4km concession in northern Spain.

The asset is being sold by RREEF Pan-European Infrastructure Fund, a vehicle managed by Deutsche Asset Management.

The acquisition will be funded by equity from the fund and junior debt from a Brookfield Asset Management affiliate.

Autovía del Camino operates under a shadow toll regime where tariffs are paid directly by the Regional Government of Navarra.

Tommaso Albanese, head of infrastructure at UBS Asset Management, said: “While investor demand for exposure to infrastructure continues to grow, we remain vigilant to analysing opportunities in this space, ensuring that any potential investments provide a balanced risk profile combined with attractive returns.

“Autovía del Camino meets this criteria and represents a high quality addition to our portfolio, delivering long-term sustainable income steams for our clients in this current low-yield environment.”

The deal is the fund’s fourth, having invested in Western Generation Partners, a portfolio of US and Trinidad power generation plants, and Southern Water, a UK regulated water and wastewater company in 2016. Axicom, an Australian mobile telecommunications towers business, was bought in May 2015.