The Public Sector Pension Investment Board (PSP Investments) has completed its acquisition of a 7.51% minority stake in the 407 Express Toll Route (407 ETR) from the Canada Pension Plan Investment Board for approximately $2.4 billion.

The transaction included an upfront payment and a deferred portion payable within 18 months.

PSP joins CPPIB and Ferrovial in the ownership group of 407 ETR, a 108-kilometre, all-electronic toll highway serving the Greater Toronto Area.

This represents our largest-ever investment in Canada and will contribute to our mission and mandate,” said Sandiren Curthan, managing director and global head of infrastructure investments at PSP Investments. “This investment is part of our broader strategy to invest in core infrastructure assets and will further strengthen our global portfolio of roads assets.”

The acquisition aligns with PSP Investments’ strategy of holding high-quality infrastructure assets, the Toronto-based fund manager said previously.

Concurrent to the closing, AtkinsRéalis (formerly SNC-Lavalin) has completed the sale of its 5.06% interest in 407 ETR to Ferrovial and a 1.70% stake to CPP Investments. That agreement was announced previously.

Together, the divestments represent the full 6.76% stake previously held by AtkinsRéalis, which has exited the 407 ETR ownership group.

On a net basis, CPPIB has sold a 5.81% stake in 407 ETR.

Following these transactions, 407 ETR’s ownership structure consists of Ferrovial holding 48.29%, CPPIB and other institutional investors at 44.20%, and PSP with the 7.51% stake.

AtkinsRéalis said previously that it would receive total gross proceeds of about $2.8 billion.

Photo: Ferrovial