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Transurban pays $11b for Sydney toll road

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A Transurban joint venture is paying more than $11 billion for the NSW government's 49 per cent stake in Sydney toll road WestConnex.

The infrastructure group on Monday revealed its Sydney Transport Partners joint venture will take full ownership of the 70km network of roads, tunnels and bridges.

The deal means WestConnex is worth about $33 billion.

Motorists are already paying to drive along WestConnex and more will follow once additional road links are completed. The final link, the M5 West, is due in 2026.

Sydney Transport Partners can run the toll road until 2060 under the details of the government contract. Toll increases must be in keeping with this contract.

Transurban owns 50 per cent of Sydney Transport Partners, which bought 51 per cent of the project in 2018.

The others in the joint venture are AustralianSuper, Canadian superannuation group Caisse de depot et placement du Quebec, Canada Pension Plan and Tawreed Investments.

AustralianSuper has the second-largest stake and will own 20.5 per cent of WestConnex.

AustralianSuper infrastructure head Nik Kemp said investment returns from the toll road would benefit the retirement savings of 2.4 million customers.

Transurban will help fund the purchase by selling $4.22 billion in securities to existing security holders.

The Sydney Transport Partners deal is expected to be completed in October.

Transurban securities were paused from trading on the ASX. They last swapped on Friday for $14.18.

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