Douro coastal roads sold to Igneo

Investment funds managed by Strategic Value Partners (SVP), as well as other minority investors, have agreed to sell the motorways concessionaire Autoestradas do Douro Litoral (AEDL) to funds managed by Igneo Infrastructure Partners.

A source close to the sale process told business daily Negócios that the value of the sale is more than €400 million.

Competing with the investment fund were Abertis and Globavá, both in the race to buy the Portuguese concession holder.

In February, Negócios reported that funds led by SVP had hired Goldman Sachs and Natixis to move forward with the sale of the concessionaire that manages the A43, A41 and A32 motorways, which serve the Porto Metropolitan Area and together cover more than 73 kilometres long.

The sale, it was reported at the time, could exceed €400 million, judging by the most recent transactions in Europe in the toll motorway sector, made at 12 to 15 times EBITDA. As the expected EBITDA for AEDL in 2024 exceeds €35 million, this would imply a valuation of the concessionaire by at least €420 million.

Igneo Infrastructure Partners is a stand-alone investment team from First Sentier Investors Group that invests in infrastructure companies in the UK, Europe, North America, Australia and New Zealand.

Igneo managed approximately US$18.8Bn in assets as of March 31 on behalf of more than 200 institutional investors around the world. In Portugal, the infrastructure funds managed by Igneo Infrastructure Partners hold 75% of the renewable energy producer Finerge.