Toll Road Investments – Chicago

Three of the country’s largest pension investors have struck a $2.8-billion (U.S.) deal to acquire a toll road that links downtown Chicago and its southeastern suburbs in an 88-year agreement.

Canada Pension Plan Investment Board (CPPIB), Ontario Municipal Employees Retirement System (OMERS) and Ontario Teachers’ Pension Plan (OTPP) will each contribute $512-million for a one-third stake in Skyway Concession Co. LLC, which owns the asset. Under the agreement, the pension funds will collect tolls paid by drivers and will be responsible for operating and maintenance expenses.

Infrastructure investors like toll roads for their ability to generate stable income in different market conditions. Read More…