A consortium of three Canadian pension funds on Nov. 12 agreed to acquire for $2.8 billion the 7.8-mile Chicago Skyway toll road that extends from central Chicago to the Indiana state line. The expressway originally was purchased from the city in 2005 for $1.83 billion by Cintra Infraestructuras, a subsidiary of Spain’s Ferrovial SA, and Australia’s Macquarie Group, which also had the right to manage and operate it for 99 years. The funds will each make an equity investment of about $512 million, with the rest coming from debt, which will be financed by the toll road for the lease’s remaining 88 years. According to Reuters, Ferrovial said it would pocket around $269 million in selling its 55% stake. Yuri Lynk, an industry-sector analyst for Canaccord Genuity, said the skyway valuation is comparable to that of Toronto’s Highway 407 concession, which also is owned by Cintra, in partnership with one of the Canada pension funds and SNC-Lavalin Group. The Montreal engineer has said it may sell its 16.8% stake in the Highway 407 concession.
Canadian Pension Group Buys Chicago’s Skyway Toll Road for $2.8B
November 19, 2015