Gaia Fund Managers has acquired a 12.67% stake in the Bakwena Platinum Corridor Concession (BPCC) from African Infrastructure Investment Managers (AIIM), a subsidiary of Old Mutual Alternative Investments.
The BPCC is responsible for managing a critical 385km stretch of highway in South Africa including the N4 and parts of the N1 in the northern provinces.
The freeway is billed as an “economically critical transport link” between the manufacturing hub of Gauteng and countries of Botswana and Namibia, with hundreds of trucks making use of the artery on a daily basis to transport goods to and from the neighbouring nations.
“The decision to sell to Gaia Fund Managers, backed by Sanlam Specialised Finance, ensures the continued operation and maintenance of the N1 and N4,” said AIIM.
“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.”
The sale also highlights the growing trend of infrastructure as a compelling asset class for institutional investors, particularly within emerging markets such as Africa.
“As infrastructure investment continues to gain momentum across Africa, AIIM’s successful exit from the BPCC signals confidence in such ventures’ long-term attractiveness regarding GDP-linked returns, inflation protection, and predictable yields,” said AIIM.
“AIIM’s divestment comes amid heightened interest in infrastructure assets across Africa, driven by the continent’s growing need for resilient and sustainable transport networks.”
Socio-economic success
Hendrik Snyman, chief investment officer of Gaia Fund Managers, said the company will strive to improve conditions for users of the BPCC-managed N4 and N1.
“To have a private investor that is incentivised to have roads maintained in a safe manner is critically important. If correctly managed, private investment in infrastructure can have a very positive impact on the country,” he said.
“A well-working transport corridor unlocks economic value for everyone along that corridor, which unlocks socio-economic upliftment. With an impact investment we not only strive to not do harm, but we strive to do good.”
The transaction complements Gaia’s existing interest in the N3 toll road between Durban and Johannesburg, and aligns with its strategy of developing a transportation infrastructure platform that invests in existing and new infrastructure projects that not only provide investors with attractive inflation-linked returns but promote broad socio-economic upliftment, the company said.
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