Gaia Fund Managers acquires AIIM's stake in South African toll road operator
Gaia Fund Managers has acquired a 12.67% shareholding in Bakwena Platinum Corridor Concession.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
Gaia Fund Managers has acquired a 12.67% shareholding in Bakwena Platinum Corridor Concession (BPCC), toll operator of the N4 and part of the N1 highways in South Africa’s northern provinces.
Gaia bought the stake following African Infrastructure Investment Managers (AIIM)’s exit of the investment held through its African Infrastructure Investment Fund 2. The acquisition was backed by Sanlam Specialised Finance. AIIM is a subsidiary of Old Mutual Alternative Investments.
This 385 km stretch of highway is an economically critical transport link between the manufacturing hub of Gauteng, and neighbouring countries Botswana and Namibia.
The transaction, which complements Gaia’s existing stake in the N3 toll road between Durban and Gauteng, aligns with Gaia’s strategy to develop a transportation infrastructure platform which invests in existing and new infrastructure projects that provides investors with inflation-linked returns.
Says Dr Hendrik Syman, chief investment officer of Gaia Fund Managers: “To have a private investor that is incentivised to have roads maintained in a safe manner is critically important. If correctly managed, private investment in infrastructure can have a very positive impact on the country. A well working transport corridor unlocks economic value for everyone along that corridor, which unlocks socio-economic upliftment. With an impact investment we not only strive to not do harm, but we strive to do good.”
Mark Moorhouse, executive head for infrastructure and project finance at Sanlam Specialised Finance said, “We are proud to provide funding for this transaction which fits well with our strategy to develop and leverage partnerships to support people and planet through the provision of sustainable infrastructure.”
BPCC holds a 30-year concession with the South African National Roads Agency Limited (SANRAL).
The concessionaire’s route management will continue until it is handed over to SANRAL in August 2031.
Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe here