A new owner takes the fund's 10.5% WestConnex and 25% NWRG stakes
CPP Investments has agreed to sell its 10.5 percent interest in WestConnex and its 25 percent interest in NorthWestern Roads Group (NWRG) to Transurban, ending its ownership of two transport infrastructure assets serving Sydney, Australia.
The transaction is expected to generate gross proceeds of approximately A$4.5bn, a figure the Canada Pension Plan Investment Board release also states as $4.5bn.
Final proceeds will be subject to customary closing adjustments, taxes and costs.
WestConnex connects western and south-western Sydney with the Central Business District, Sydney Airport and Port Botany, and ranks among Australia's largest transport infrastructure projects.
NWRG comprises Westlink M7 and NorthConnex, which provide passenger and freight connectivity across Greater Sydney.
CPP Investments first invested in Westlink M7 in 2010, followed by investments to develop NorthConnex in 2014 and to acquire WestConnex in 2018.
The pension fund manager worked alongside its partners over the ownership period to support the expansion and operation of the assets.
James Bryce, managing director and head of infrastructure at CPP Investments, said in the release that the assets facilitate "the movement of people and goods across Greater Sydney."
He said the transaction lets CPP Investments "realize value from mature assets."
CPP Investments has invested in Australia for more than 16 years and holds positions across infrastructure, real estate, public and private equities, credit and investment funds.
Its Australian holdings include AirTrunk, BAI Communications and Pacific National, alongside partnerships with Goodman, Lendlease and Dexus, and it operates an Australian-dollar term debt program known as a Kangaroo Bond program.
Closing is subject to certain conditions, including relevant regulatory approvals.
