Macquarie Infrastructure Partners II Announces Agreement to Divest Investment in Elizabeth River Crossings
Macquarie Infrastructure Partners II ("MIP II"), announced that an agreement has been reached today to divest its 50% managed equity interest in Elizabeth River Crossings ("ERC") as part of a full sale of ERC to Abertis and Manulife Investment Management, on behalf of John Hancock Life Insurance Company (U.S.A.). ERC's facilities include the Downtown and Midtown Tunnels and the MLK Freeway extension in the Hampton Roads, Virginia region.
ERC is a public-private partnership with the Virginia Department of Transportation that commenced in 2012. Over the last eight years, ERC has successfully completed over $1.4 billion of capital expenditure, including the rehabilitation of the Downtown and existing Midtown Tunnels, the construction of a new parallel Midtown Tunnel and the extension of the MLK Freeway/U.S. 58 to I-264. Upon completion of the New Midtown Tunnel, the full complement of ERC facilities has provided the traveling public safe and reliable passage between Portsmouth and Norfolk, with tunnel availability of over 99%.
ERC has also replaced the I-264 pedestrian bridge and installed the Elizabeth River Trail pedestrian bridge over U.S. 58 East. The rehabilitation of the Downtown & Midtown Tunnels brought the tunnels up to National Fire Protection Association standards and included replacing existing lights with energy-efficient LEDs.
Karl Kuchel, CEO of Macquarie Infrastructure Partners, said: "We are proud to have partnered with VDOT and ERC management and staff over the last eight years to deliver improved transportation infrastructure to the Hampton Roads region. Public-private partnerships are an important part of closing the infrastructure gap in the United States and ERC is a clear example of this, with major infrastructure improvements being implemented on schedule and on budget."
The sale agreement is subject to regulatory and other closing conditions and the parties are working expeditiously toward closing. RBC Capital Markets, LLC acted as sell-side financial advisor and Orrick, Herrington & Sutcliffe LLP acted as legal counsel.
ENDS
About Macquarie Infrastructure and Real Assets
Macquarie Infrastructure and Real Assets (MIRA) is one of the world's leading alternative asset managers. For more than 25 years, MIRA has partnered with investors, governments and communities to manage, develop and enhance assets relied on by more than 100 million people each day. At 31 March 2020, MIRA managed approximately $US132 billion in assets that are essential to the sustainable development of economies and communities, including; 151 portfolio businesses, approximately 500 real estate properties and 4.8 million hectares of farmland.
MIRA is a part of Macquarie Asset Management, the asset management arm of Macquarie Group, a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs 15,849 people in 31 markets. At 31 March 2020, Macquarie had assets under management of $US367.7 billion. For further information, visit www.macquarie.com.
None of the entities referred to in this press release is an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.
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