VINCI Concessions Seals Landmark Acquisition of Denver’s Northwest Parkway

VINCI Concessions Seals Landmark Acquisition of Denver’s Northwest Parkway

(IN BRIEF) VINCI Concessions, through its subsidiary VINCI Highways, has completed the purchase of NWP HoldCo LLC, securing full ownership of Northwest Parkway, a crucial 14 km tolled segment of the Denver ring road in Colorado, USA, for approximately $1.2 billion. This milestone marks VINCI Concessions’ inaugural major acquisition in the United States, aligning with the VINCI Group’s strategy to bolster its presence in North America. The Northwest Parkway asset boasts strategic significance, benefiting from a prime location in Denver and promising growth prospects due to the region’s economic vitality and ongoing real estate developments. With a concession term extending until 2106, operational synergies, and a focus on environmental sustainability, VINCI Highways is poised to optimize infrastructure management, enhance user experience, and drive continued growth in traffic and revenue.

(PRESS RELEASE) PARIS, 19-Apr-2024 — /EuropaWire/ — VINCI Concessions, via its subsidiary VINCI Highways, has finalized the acquisition of 100% of NWP HoldCo LLC, the concession company for Northwest Parkway, a 14 km tolled section of the Denver ring road (Colorado), for around $1.2bn (equity value at 100%).

First major acquisition for VINCI Concessions in the USA, this transaction fits within VINCI Group’s strategy to strengthen its presence in North America.

Northwest Parkway is a strongly performing asset with substantial growth potential ahead:

• Strategic location in Denver: this tolled highway section serves important economic, touristic and residential areas in the capital city of Colorado, one of the most dynamic US states. It facilitates connections to major transportation infrastructure including Denver international airport, Interstate 25 and US 36 highway.

• Positive traffic outlook: the Northwest Parkway section will benefit from the dynamism of the Colorado economy with strong demand for road mobility notably thanks to several real estate developments currently under construction along the corridor. In the longer term, the opening of the last section of the Denver ring road – which will then encircle the entire city – should generate additional traffic on the Northwest Parkway section.

• Protective contractual terms: the concession contract includes a toll indexation formula linked to economic growth, inflation and a floor against downturns in these values.

• A long-term contract: the Northwest Parkway concession, which runs until 2106, has the longest remaining term (83 years) in the USA highway sector today.

• Operational synergies: Northwest Parkway will benefit from VINCI Highways’ experience in the USA, which is the concessionaire, under the Ohio River Bridges public-private partnership, for the link between the states of Indiana and Kentucky, near Louisville. Furthermore, through its subsidiary ViaPlus, VINCI Highways manages free-flow ECT contracts in California and Texas on behalf of those states’ public authorities.

VINCI Highways will apply its expertise to optimize management of the infrastructure by bringing some services back in-house, to improve user experience and travel time reliability thanks to levers such as variable tolling.

VINCI Highways will also be rolling out its environmental initiatives aimed at achieving net zero emissions, zero waste to landfill and zero pesticides.

In 2023, Northwest Parkway recorded 7.2 million transactions, up 6% compared to 2022.

Its revenue has risen 8% a year on average since 2014, with EBITDA doubling over the same period.

A conference call on the acquisition of Northwest Parkway and recent strategic moves of VINCI Airports (acquisition of a majority stake in Edinburgh airport, extension of the Aerodom concession in the Dominican Republic) will be organised on Monday 29 April 2024 at 6.00pm Paris time.

To participate, please connect in advance to the following link to obtain an individual access code to this event: https://register.vevent.com/register/BI929b8adfcff24ac3ac494fd41fc6c584

About VINCI Highways

VINCI Highways, a VINCI Concessions subsidiary, is a leader in road concessions, operations and mobility services. We design, finance, build and operate highways, bridges, tunnels, urban roads and mobility services on a more than 3,000 km network in 14 countries. VINCI Highways leverages its expertise to deliver the highest performance and safety standards and provide drivers with a positive experience.

About VINCI Concessions

VINCI Concessions is an international player in transport infrastructure. We leverage our integrated model to design, finance, build, operate and maintain more than 90 airports, highways and rail projects in 24 countries, through our subsidiaries VINCI Airports, VINCI Highways and VINCI Railways. We are committed to shared growth with regions, and are actively making mobility ever more sustainable, efficient and innovative.

Media Contact:

email: communication@vinci-concessions.com
Tel: 01 57 98 61 35

SOURCE: VINCI