Cube Highways Trust Announces Proposed Acquisition of 7 High

New Delhi, April twenty sixth, 2024: Cube Highways Trust (“Cube InvIT”) [BSE/NSE: CUBEINVIT], managed by Cube Highways Fund Advisors Pvt. Ltd. (the “Investment Manager / IM”) at present introduced the proposed acquisition of as much as 100% fairness shareholding in seven freeway property from Singapore based mostly Cube Highways and Infrastructure III Pte Ltd. and Cube Highways Infrastructure Pte. Ltd., the Sponsors of Cube InvIT, in a number of tranches. The proposed acquisition was accepted by the Board of Directors of the Investment Manager held on Thursday, April 25, 2024, topic to the approval of Ordinary Unitholders of Cube InvIT.

The seven freeway property, which embody six Hybrid Annuity Model (HAM) property and one Build-Operate-Transfer (BOT) asset, span round 2,200 lane kms and are unfold throughout geographic footprints of Andhra Pradesh, Maharashtra, Telangana, and Tamil Nadu.

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Pankaj C. Vasani, Group CFO of Cube InvIT, acknowledged: “The proposed strategic addition of these seven property will probably be a big milestone, a testomony to the boldness of our traders in Cube InvIT and complement the present portfolio of property. These property have an enterprise worth of ₹5,172 crores as of February 29, 2024, and will probably be acquired by means of inside accruals and a combination of debt, topic to crucial approvals. After these acquisitions, the yield is predicted to develop upward of c.1.5% p.a. over a interval of subsequent 5 years.”

The Board has additionally accepted the postal poll discover to hunt the approval of Ordinary Unitholders for this proposed acquisition. With this acquisition, InvIT’s asset portfolio will consist of 25 diversified property unfold throughout 13 States.

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Vinay C. Sekar, CEO of Cube InvIT, stated, “This previous yr has been a interval of important achievements – strong income progress of over 11.5%, a distribution plan in keeping with expectations – and now this transaction will probably be aligned with Cube Highway’s technique of transferring de-risked and yield property that ship dependable returns to the Cube InvIT. These property will enhance Cube InvIT’s Assets Under Management (AUM) by over 20% from ₹25,024 crores as of December 31, 2023. The Net Debt/ AUM will stand round 46 per cent put up this acquisition, offering satisfactory headroom for progress.”

The buying and selling window for dealing within the securities of Cube InvIT shall stay closed. The acquisition is predicted to be accomplished topic to the satisfaction of customary closing situations, together with receipt of statutory clearances and approval of Ordinary Unitholders of Cube InvIT.