May 28 2015

IFM Investors completes acquisition of Indiana Toll Road Concession Company

IFM Investors today announced the completion of IFM Global Infrastructure Fund’s previously announced acquisition of 100 percent of the equity in the Indiana Toll Road Concession Company, LLC (ITRCC), which operates the Indiana Toll Road.

“IFM Investors’ acquisition of the Indiana Toll Road Concession Company is consistent with our stated approach to expanding our North American portfolio of assets,” said Julio Garcia, Head of Infrastructure – North America at IFM Investors. "We believe the Indiana Toll Road is a terrific and complementary addition to our existing portfolio of toll road and other infrastructure investments."

“Under our stewardship of this vital asset to the region, the Indiana Toll Road will soon undergo a series of improvements designed to enhance the customer experience.”

IFM Investors believes that the planned improvements to the Indiana Toll Road have the potential to create new construction jobs for local workers over the next five years and revitalize one of America’s most important transport corridors.

The Indiana Toll Road is a 157-mile, limited access, divided highway spanning northern Indiana from its border with Ohio to the Illinois state line near Chicago. The ITRCC is required to operate the toll road under a lease agreement that was signed in 2006, and has the exclusive right to collect toll revenues through the term of the agreement, which has a remaining life of 66 years.

The acquisition was premised on a conservative set of growth expectations for both traffic and revenue. The final purchase price for the ITRCC was $5.725 billion, consistent with the purchase price and transaction structure outlined when the planned acquisition was announced.  The transaction is being financed using what IFM Investors views as a prudent capital structure that includes debt with maturities as long as forty years.

The investment becomes the thirtieth infrastructure asset in IFM Investors’ current portfolio. It is IFM Investors’ second investment in North American toll road infrastructure in 2015, and the fourth toll road in IFM’s infrastructure portfolios.

The Indiana Toll Road’s operating history demonstrates a long-standing linkage to economic growth. Operational since 1956, the toll road is a major freight corridor serving a large, mature, and industrially-developed regional economy. The road is the only multi-lane, non-stop route between Chicago and the Ohio Turnpike, and as such is a critical component of the Midwest and Northeast transportation and logistics networks.