Equity raising with instos. $5000SP for privates"Macquarie...

Equity raising with instos. $5000SP for privates

"Macquarie Infrastructure Group (MIG) shares remain in trading halt after the company today declared it would invest $711 million in Dulles Greenway, a 22 kilometre operating toll road in the US. The group said it was forecasting an average yield of 8% per annum over the next 10 years on the investment.

The road runs west of Washington D.C. from Dulles International Airport to Leesburg, through Loudoun County, Northern Virginia.

Mr Steve Allen, CEO of MIG said, the Dulles Greenway has a number of highly attractive attributes that caught the attention of MIG and we have been actively pursuing the opportunity to invest in the road for some time.

“Dulles Greenway is a relatively young, well maintained intra urban toll road with a 10-year operating history and 51 years remaining in the concession agreement.

TRIP II, a limited partnership, owns the Dulles Greenway.

MIG will provide loans against and hold options over 86.7% of TRIP II, and acquire 100% of the General Partner. The General Partner has day-to-day responsibility for the management and operation of the concession.

One of the most exciting aspects about the road is that it serves an affluent region experiencing strong population and employment growth.

“Although the road experienced difficulties in the early years the region’s strong growth is now reflected in the Dulles Greenway’s compound average growth of 17% for traffic and 26% for revenue between 1996 and 2004.

“This is a high quality, growth asset that will be value accretive to the MIG portfolio. Following the completion of our investment in Dulles Greenway it will comprise 8% of MIG’s portfolio and will be our third investment in the growing United States toll road