PSP Investments has acquired a 7.51% stake in the 407 ETR toll highway for approximately $2.39 billion, joining CPP Investments and Ferrovial in enhancing critical infrastructure in the Greater Toronto Area.

Information on the Target

The 407 Express Toll Route (407 ETR) is an all-electronic and barrier-free toll highway stretching 108 kilometers across the Greater Toronto Area. It serves a crucial transportation role, facilitating over three million journeys each week. This strategic infrastructure asset is recognized for its efficiency and modern toll collection system, positioning it as a key contributor to the region’s mobility and economic growth.

Industry Overview in Canada

Canada's toll road sector operates within a complex landscape characterized by increasing infrastructure demands and the need for sustainable transportation solutions. The growing population and urbanization in metropolitan areas, particularly Toronto, have intensified the urgency for enhanced transportation infrastructure to handle increased traffic loads.

The Canadian government and various private entities have been investing in innovative infrastructures, such as electronic tolling systems, which enhance the efficiency of revenue