Gaia acquires stake in toll operator of N1, N4 highways

Infrastructure investment firm Gaia Fund Managers has acquired a 12.67% shareholding in the Bakwena Platinum Corridor Concession (BPCC) – the toll operator of the N4 highway and a portion of the N1 highway.

The 385 km stretch of highway BPCC manages is an economically critical transport link between the manufacturing hub of Gauteng, and neighbouring countries Botswana and Namibia.

Hundreds of trucks, some of them destined for as far away as the Democratic Republic of Congo, and thousands of motorists, use the road daily, Gaia says.

The transaction complements Gaia’s existing stake in the N3 toll road between Durban and Gauteng.

The transaction also aligns with its strategy to develop a transportation infrastructure platform that invests in existing and new infrastructure projects, provides investors with inflation-linked returns and promotes broad socioeconomic upliftment.

“It is critically important that the routes have a private investor that is incentivised to maintain the roads in a safe manner. If correctly managed, private investment in infrastructure can have a very positive impact on the country,” says Gaia chief investment officer Dr Hendrik Syman.

A well-operating transport corridor unlocks economic value for everyone along that corridor, which unlocks socioeconomic upliftment as part of the impact investment, he adds.

Gaia bought the stake following infrastructure investment firm African Infrastructure Investment Managers' (AIIM's) exit from the investment held by its African Infrastructure Investment Fund 2.

AIIM's choice of buyer underscores its commitment to a seamless transition, prioritising the ongoing functionality of the toll road, which serves thousands of motorists daily, says AIIM investment director Moritz Thompson.

“The move to exit the toll road asset reflects AIIM’s proactive approach in aligning its investment strategy with favourable market conditions, thereby ensuring optimal value realisation and supporting continued infrastructure development in South Africa,” he says.

The acquisition of the stake in BPCC was backed by asset management company Sanlam Specialised Finance.

“This transaction fits our strategy to develop and leverage partnerships to support people and planet through the provision of sustainable infrastructure,” says Sanlam Specialised Finance Infrastructure and Project Finance executive head Mark Moorhouse.

BPCC holds a 30-year concession with the South African National Roads Agency (Sanral). The concessionaire’s route management will continue until it is handed over to Sanral in August 2031.