Singapore-based Cube Highways & Infrastructure, investment arm of global infrastructure fund I Squared Capital, plans to monetise some of its road assets by selling seven highway projects spanning 516 km (2,200 lane km). The road assets are spread across Andhra Pradesh, Maharashtra, Telangana and Tamil Nadu.

The assets include six hybrid annuity model (HAM) assets and one build-operate-transfer (BOT) asset. Cube has hired Ambit Capital to run the sale process. 

In Maharashtra, the two HAM assets are the 52-km Borgaon-Watambare Highways and 56-km Mangalwedha Solapur Highways, which are part of NH-166 connecting the south-western region of the state. Assets on the block in Tamil Nadu and Andhra Pradesh include the 39-km Trichy to Kallagam road and the 61-km Chittoor to Mallavaram road, respectively. Both these assets with a concession period of 15 years were acquired from Hyderabad-based KNR Constructions in 2018.

The single BOT road asset that Cube plans to monetise is the 212-km Narketpally Addanki Medarametla Expressway (Namel) spread across Andhra Pradesh and Telangana, where the 24-year long concession agreement is signed with road development corporations of both the states. In Telangana, it plans to sell 49-km Mangloor Highway connecting Mangloor to Telangana-Maharashtra border section of National Highway-161, which is part of the economic corridor under Bharatmala Pariyojana scheme. Another one is a 47 km-long stretch of NH-161 from Ramsanpalle to Mangloor. 

Cube Highways, the largest roads operator in India with a portfolio of 27 highways spanning nearly 8,400 lane km, had originally planned to transfer these assets with a right of first offer (ROFO) into its private infrastructure investment trust (InvIT). It had raised Rs 5,225 crore (USD 630 million) last year from investors including British Columbia Investment Management Corporation and Abu Dhabi's sovereign investor Mubadala Investment through its private InvIT.