A consortium of the Canada Pension Plan Investment Board, OMERS, and the Ontario Teachers’ Pension Plan have struck a US$2.8 billion deal to acquire Skyway Concession Company LLC, which operates the Chicago Skyway toll road.
Each pension will own a 33.33 per cent interest, and contribute an equity investment of about US$512 million.
Skyway is a 12.5-kilometre toll road that forms a link between downtown Chicago and its south-eastern suburbs. Skyway Concession Company manages, operates and maintains the toll road under a concession agreement that runs until 2104.
The transaction “represents a rare opportunity for us to invest in a mature and significant toll road of this size in the U.S.,” said Cressida Hogg, managing director and head of infrastructure at CPPIB.
She said the investment “fits well with CPPIB’s strategy to invest in core infrastructure assets with long-term, stable cash flows in key global markets.”
In a statement, Hogg called OMERS and the Teachers’ pension plan “like-minded, long-term investors.”
Ralph Berg, executive vice president and global head of infrastructure at OMERS Private Markets, said the investment in Skyway is in keeping with a plan to increase North American infrastructure assets under management.
For the Teachers’ pension plan, the investment “will provide inflation-protected returns” to match liabilities, and will further diversify the infrastructure portfolio, said senior vice-president Andrew Claerhout.
The transaction is subject to regulatory approvals and closing conditions.