(Alliance News) - Investor John Laing Group PLC has made its first move into Latin America, it said Tuesday, with an investment into a Colombian road project.
John Laing, which focuses on infrastructure and renewable energy and is a member of the FTSE 250 index, has taken a 30% stake in the Ruta del Cacao project for GBP62 million.
The project involves the construction of 236 kilometres of road connecting the cities of Bucaramanga, Barrancabermeja, and Yondo in the north-eastern department of Santander.
The first construction phase of the project is expected to be completed by 2021.
Chief Executive Olivier Brousse said: "This is an important development for John Laing with Ruta del Cacao representing our first investment in Latin America, a region with a strong pipeline of new opportunities. With our extensive experience delivering infrastructure projects, we believe we can help the Colombian government fulfil its ambitious road plan and deliver attractive, risk-adjusted returns for our investors.
"We are delighted to be involved alongside Cintra/Ferrovial, longstanding partners of ours, and Colpatria and Ashmore [Group PLC], all of which have many years of relevant experience in infrastructure in Colombia."
"Users of this road will benefit from travel time reductions and significant road safety improvements. We expect the project will have a positive impact on the Santander region and the local communities it serves," he continued.
"Looking ahead, we continue to assess investment opportunities elsewhere in Colombia and in other Latin American countries, such as Chile."
John Laing shares were 0.3% higher on Tuesday morning in London at 386.20 pence each.
