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Mumbai: Singapore-based Cube Highways & Infrastructure on Tuesday signed an agreement with the National Highways Authority of India (NHAI) to take over Neelamangala-Devihalli highway in Karnataka for an undisclosed amount. The project was being operated by the now crippled Lanco Infrastructure, Cube Highways said in a statement on Tuesday.

Cube Highways is a portfolio company of Isquared Capital, which is fully-owned by Abu Dhabi Investment Authority, and mostly invests in Indian roads and highways.

The deal further expands Cube's geographic presence in the South apart from diversifying traffic flow.

It has a portfolio of 27 highways with nearly 8,400 lane-km across the country, including assets under operations and various stages of closing.

Following the transaction, Cube Highways has incorporated a new SPV Nelamangala Devihalli Expressway. It was earlier known as Lanco Devihalli Highways.

Gautam Bhandari, a director at Cube and a managing partner at Isquared Capital, said the company has had a strong record of deal closures during the pandemic.

The 80-km-long four-lane Nelamangala-Devihalli Expressway links Bengaluru to Mangalore and has had a strong recovery in traffic and daily revenue after the lockdowns were lifted. The road connects several pilgrim centres and important tourist destinations like Coorg and Udupi.

The project has been operational since June 2012 and was awarded as a 25-year concession after competitive bidding in 2008 for strengthening and widening the two-lane highway to a four-lane configuration.