The Canada Pension Plan Investment Board (CPPIB) now has a 10% interest in the 407 Express Toll Route (ETR) in Toronto.
Cintra Infraestructuras has agreed to sell the CPPIB 10% for $894 million.
The deal is expected to be completed within a few months and is subject to a right-of-first-refusal in favour of the other shareholders of 407 ETR.
“Consistent with our investment thesis for our proposed acquisition of Intoll Group, we believe the 407 ETR is an attractive infrastructure asset and a strategic fit with the CPPIB’s portfolio and long-term investment mandate,” said André Bourbonnais, senior vice-president, private investments, with the CPPIB.
During the first half of 2010, traffic on the 407 increased by 6%. On June 30, 2010, the 407 ETR set a new traffic volume record more than 454,000 vehicles used it, a record previously set in October 2007.
