Press Release: PSP Investments joins CPP Investments and Ferrovial in 407 ETR ownership group

PSP Investments joins CPP Investments and Ferrovial in 407 ETR ownership 
group 
 
 
   PR Newswire 
 
 
   TORONTO, March 13, 2025 
 
 
   Transaction Highlights: 
 
 
   -- PSP Investments to acquire significant minority stake of 7.51% in 407 ETR 
 
      from CPP Investments 
 
 
 
   -- CPP Investments and Ferrovial to concurrently enter into agreements to 
 
      acquire an aggregate 6.76% stake in 407 ETR from AtkinsRéalis 
 
 
 
   -- Transactions position 407 ETR for long-term performance amid increasing 
 
      traffic demand 
 
 
   TORONTO, March 13, 2025 /PRNewswire/ - Public Sector Pension Investment 
Board (PSP Investments), one of Canada's largest pension investors, 
today announced that it has entered into agreements to acquire a 
strategic interest in 407 Express Toll Route (407 ETR), an 
all-electronic, barrier-free, toll highway spanning 108km in the Greater 
Toronto Area, from investment management organization Canada Pension 
Plan Investment Board (CPP Investments). 
 
 
 
   PSP Investments will add this 407 ETR investment to its global portfolio 
of road assets through the acquisition of a 7.51% stake for a purchase 
price comprised of approximately $2.39 billion payable at closing, and a 
deferred payment to be made up to 18 months after closing. 
 
 
   Simultaneously, engineering services and nuclear company 
AtkinsRéalis will enter into agreements to sell its remaining 6.76% 
stake in 407 ETR to CPP Investments and Ferrovial, a global 
infrastructure company. CPP Investments expects to acquire a 1.70% 
interest in 407 ETR from AtkinsRéalis, on the same basis as the 
deferred portion of the purchase price paid by PSP Investments. Net 
proceeds to CPP Investments from all of the applicable transactions are 
expected to be approximately $2.39 billion for a net 5.81% interest sold 
after closing. 
 
 
   Following completion of these transactions, ownership control of 407 ETR 
is expected to be attributed as follows: Ferrovial at 48.29%, CPP 
Investments and other institutional investors at 44.20%, and PSP 
Investments at 7.51%. AtkinsRéalis will cease to be a shareholder. 
 
 
   "We are pleased to join CPP Investments and Ferrovial in the 407 ETR 
ownership group. PSP Investments has deep expertise in the 
transportation sector and will support the long-term stability and 
reliability of this critical road that services more than 3 million 
Canadians each week," said Sandiren Curthan, Managing Director and 
Global Head of Infrastructure Investments, PSP Investments. "Our 
investment in 407 ETR represents our largest infrastructure commitment 
in Canada to date and exemplifies our broader infrastructure strategy, 
which is focused on investing in high-quality, essential global 
infrastructure assets in transportation, communications and energy, 
enabling us to deliver on our mission and mandate." 
 
 
   "This transaction enables CPP Investments to optimize returns for CPP 
contributors and beneficiaries while building stronger ties with two 
valued partners and continuing to own a significant stake in a 
high-quality business," said James Bryce, Managing Director, Head of 
Infrastructure, CPP Investments. "We look forward to partnering with PSP 
Investments, Ferrovial and the management team, as the 407 ETR continues 
to deliver excellent service to the millions of individual and business 
customers who use the highway." 
 
 
   "We are pleased to have PSP Investments join Ferrovial and CPP 
Investments as a shareholder in 407 ETR. We share a long-term commitment 
to this high-quality asset and a track record of successful 
collaboration with all our partners. We will continue to serve the 
citizens of the Greater Toronto Area and improve mobility and growth in 
the region," said Ignacio Madridejos, CEO of Ferrovial. 
 
 
   The transactions are subject to customary closing conditions and 
adjustments. 
 
 
   About PSP Investments 
 
 
   The Public Sector Pension Investment Board (PSP Investments) is one 
of Canada's largest pension investors with $264.9 billion of net assets 
under management as of March 31, 2024. It manages a diversified global 
portfolio composed of investments in capital markets, private equity, 
real estate, infrastructure, natural resources, and credit investments. 
Established in 1999, PSP Investments manages and invests amounts 
transferred to it by the Government of Canada for the pension plans of 
the federal public service, the Canadian Forces, the Royal Canadian 
Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP 
Investments has its principal business office in Montréal and 
offices in New York, London and Hong Kong. For more information, 
visit investpsp.com or follow us on LinkedIn. 
 
 
   About CPP Investments 
 
 
   Canada Pension Plan Investment Board (CPP Investments$(TM)$) is a 
professional investment management organization that manages the Fund in 
the best interest of the more than 22 million contributors and 
beneficiaries of the Canada Pension Plan. In order to build diversified 
portfolios of assets, investments are made around the world in public 
equities, private equities, real estate, infrastructure and fixed 
income. Headquartered in Toronto, with offices in Hong Kong, London, 
Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP 
Investments is governed and managed independently of the Canada Pension 
Plan and at arm's length from governments. At December 31, 2024, the 
Fund totalled C$699.6 billion. For more information, please 
visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on 
X @CPPInvestments. 
 
 
   About Ferrovial 
 
 
   Ferrovial is one of the world's leading infrastructure companies. The 
Company operates in more than 15 countries and has a workforce of over 
25,000 worldwide. Ferrovial is triple listed on Euronext Amsterdam, the 
Spanish Stock Exchanges and Nasdaq and is a member of Spain's blue-chip 
IBEX 35 index. It is also included in globally recognized sustainability 
indices such as the Dow Jones Best in Class Index (former Dow Jones 
Sustainability Index), and all its operations are conducted in 
compliance with the principles of the UN Global Compact, which the 
Company adopted in 2002. 
 
 
 
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   SOURCE PSP Investments 
 
     /CONTACT: For More Information: PSP Investments, Charles Bonhomme, +1 438 465-1260, media@investpsp.ca; CPP Investments, Frank Switzer, Public Affairs & Communications, T: +1 416-523-8039, fswitzer@cppib.com 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

March 13, 2025 07:12 ET (11:12 GMT)