PSP quietly makes largest Canadian move, joining CPP and Ferrovial in controlling GTA toll route
Public Sector Pension Investment Board (PSP Investments) has made its largest-ever Canadian investment by acquiring a 7.51 percent minority stake in the 407 Express Toll Route (407 ETR), a key infrastructure asset in the Greater Toronto Area (GTA), from CPP Investments.
Sandiren Curthan, managing director and global head of Infrastructure Investments at PSP Investments, said the deal marks the start of a new partnership with CPP Investments and Ferrovial in the ownership of 407 ETR.
He described it as PSP’s largest investment in Canada to date and said it aligns with their strategy to invest in core infrastructure.
He also noted it brings PSP’s transportation sector experience to a road that serves more than 3 million Canadians each week.
The 108-kilometre, all-electronic, barrier-free toll highway is now jointly owned by PSP Investments, CPP Investments, and global infrastructure operator Ferrovial.
In parallel with PSP’s acquisition, AtkinsRéalis completed the sale of its entire 6.76 percent stake in 407 ETR—5.06 percent to Ferrovial and 1.70 percent to CPP Investments.
Net of these transactions, CPP Investments sold a 5.81 percent stake in the highway.
James Bryce, managing director and head of Infrastructure at CPP Investments, stated, “Highway 407 ETR continues to provide reliable and essential service to millions of users across the GTA and remains a strong fit for our investment portfolio.”
He said the sale allowed CPP Investments to optimise returns after 15 years of ownership, while maintaining a major stake in what he called their largest investment in Canada.
He also confirmed CPP Investments looks forward to its continued partnership with PSP Investments, Ferrovial, and 407 ETR’s management.
Following completion of the transactions, 407 ETR ownership now stands at 48.29 percent for Ferrovial, 44.20 percent for CPP Investments and other institutional investors, and 7.51 percent for PSP Investments.
