PSP Investments has acquired a 7.51% minority stake in the 407 ETR from CPP Investments, emphasizing its commitment to expanding investments in core infrastructure assets in Canada.

Information on the Target

The 407 Express Toll Route (407 ETR) is a vital infrastructure asset spanning 108 kilometers in the Greater Toronto Area (GTA). As an all-electronic, barrier-free toll highway, it significantly enhances regional mobility by providing a reliable alternative for commuters, thereby alleviating congestion on adjacent roadways. With a proven track record of efficient operations, the 407 ETR serves over 3 million Canadians weekly, making it an essential artery for daily transportation needs.

The highway is currently owned by a consortium of stakeholders, including the Public Sector Pension Investment Board (PSP Investments), Canada Pension Plan Investment Board (CPP Investments), and global infrastructure operator Ferrovial. This partnership allows for shared governance and investment in maintaining and enhancing the service quality of the 407 ETR, ensuring it meets the demands of its users efficiently.

Industry Overview in Canada

Canada's infrastructure sector is characterized by a diverse range of assets, with road networks playing a pivotal role in supporting economic activity. The country is witnessing a growing demand for reliable transportation due to urb