The Canada Pension Plan Investment Board (CPPIB), OMERS and the Ontario Teachersβ Pension Plan are investing $2.8bn (β¬2.6bn) in a US toll road operator.
The three Canadian pension funds are investing in the Skyway Concession Company, which manages, operates and maintains the Chicago Skyway toll road.
The agreement runs until 2104.
CPPIB, OMERS and Ontario Teachers will respectively take a 33.33% interest in the firm, contributing $512m each.
Skywa, a 7.8-mile toll road between downtown Chicago and its south-eastern suburb, is regarded as one of the busiest corridors in the US.
Cressida Hogg, managing director and head of infrastructure at CPPIB, said: βSkyway represents a rare opportunity for us to invest in a mature and significant βtoll road of this size in the US.
βThis investment fits well with CPPIBβs strategy to invest in core infrastructure assets with long-term, stable cash flows in key global markets.β
Ralph Berg, OMERS Private Markets executive vice-president and global head of infrastructure, said Skyway aligned with the pension fundβs strategy of buying assets generating stable, consistent returns.
βOur investment in Skyway also fits with our goal of growing our assets under management in the North American infrastructure space,β Berg said.
Andrew Claerhout, senior vice-president of infrastructure at Ontario Teachers, said the long-dated nature of the concession βclosely reflectsβ the fundβs investment horizon.
βSkyway is a critical asset for the Chicago region that will provide inflation-protected returns to match our liabilities and further diversify our infrastructure portfolio,β he said.
In a major US toll road deal , the operating company of the Indiana Toll Road, which went bankrupt last year, was taken over by Australian infrastructure fund manager IFM Investors.
IFM bought all the equity in ITR Concession Company, paying $5.73bn.
