Boston, MA 01/23/2014 (wallstreetpr) – Transurban Group (ASX:TCL) is a toll road developer, operator and owner. The company is one of the hottest toll road operators in Australia. TCL needs no introduction to investors that have been tracked it for the past two or so years. Yet so much still needs to be revealed about this company if only that can help to set records straight and expose opportunities that there is in it.
The company recently reported earning $228.1 million in toll revenue from the operation period ending December. That revenue signaled a 12.6 percent increase against the previous corresponding quarter. As for the half year ended December 31, TCL generated roll revenue increase of $13.3 percent to $450 million.
Transurban’s good performance was also helped by improvement in travel time following the August completion of M2 road upgrade.
Investments
Transurban Group (ASX:TCL) owns toll roads in many different locations around the world with saturation of this kind of investment in Australia. The company owns Lane Cove Tunnel and Hills M2 in Sydney. It also owns CityLink in Melbourne. TCL has also invested in many state roads in U.S.
The company recently acquired senior secured debts from Royal Bank of Scotland valued at $475 million. This transaction leaves Transurban as the sole hold of the secured debt.
Following the announced proposal to sell Queensland Motorway, Transurban hopes to make a successful deal to add the potentially lucrative road network to its portfolio.
The network involves six toll roads. With the cost of the acquisition likely to hit $6 billion, it possible Transurban would seek a partner for a joint venture to acquire Queensland Motorway. The possible partner that analysts believe would be convenient for Transurban to work with is the $70 billion AustralianSuper.
Investor takeaway
Transurban Group (ASX:TCL) presents a perfect investment opportunity for those interested in sharing toll road benefits. But such benefits can also come from equally perfect companies in the same business such as Sydney Airport Holdings Ltd (ASX:SYD) and Macquarie Atlas Roads Limited (ASX:MQA).
