30 Dec 2020

Abertis closes the acquisition of Elizabeth River Crossings in Virginia, US

Abertis closes the acquisition of Elizabeth River Crossings in Virginia, US

  • Abertis and Manulife Investment Management have closed the acquisition of 100% stake of Elizabeth River Crossings (ERC), in Hampton Roads, Virginia. The deal has been carried out through a consortium in which Abertis holds 55.2%.
  • Together with the acquisition of RCO in June, this deal shows Abertis' ability to continue to expand its concession portfolio and further diversify.

The consortium formed by Abertis and Manulife Investment Management, a long-term institutional infrastructure investor, have acquired from Macquarie Infrastructure Partners II and Skanska a 100% stake in Elizabeth River Crossings (ERC), in Hampton Roads, Virginia (USA).

The deal has been be carried out through a consortium in which Abertis holds 55.2%. Therefore, the asset will be fully consolidated into the Group’s accounts.

The acquisition of ERC in Virginia is a further important step in Abertis’ growth strategy in the key target market of the United States, one of the most important markets for infrastructure investment in the world. It also represents Abertis’ second major acquisition in less than a year, following the purchase in June of the control of Red de Carreteras de Occidente (RCO) in Mexico for ca. €5bn, demonstrating the ability of Abertis to effectively manage its concession portfolio, replacing concessions that are nearing end with new assets with strong future prospects.

The integration of ERC will strengthen Abertis’ growth platform in the United States and will facilitate the analysis of further opportunities. Abertis looks forward to working for the benefit of local communities and building on a constructive and mutually beneficial relationship with Governments and Transport Authorities in the Commonwealth of Virginia and in the US as a whole.

The Elizabeth River Crossings tunnels are located in the Hampton Roads region and are one of the most highly travelled roads in the Virginia Beach-Norfolk-Newport News metropolitan area. The concession has a residual duration of 50 years, until April 2070. Elizabeth River Tunnels provide access to important employment, commercial, military and waterside areas in Norfolk and the rest of the Hampton Roads area, which is home to the deepest commercial port on the East Coast. They have shown strong resilience in 2020 during the coronavirus pandemic.

About Manulife Investment Management

Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. It draws on more than a century of financial stewardship and the full resources of its parent company to serve individuals, institutions, and retirement plan members worldwide.

Headquartered in Toronto, its leading capabilities in public and private markets are strengthened by an investment footprint that spans 17 countries and territories. Manulife Investment Management complements these capabilities by providing access to a network of unaffiliated asset managers from around the world. More info: www.manulifeim.com.