Transurban Group
(ASX:TCL) is set to buy the Royal Bank of Scotland's $475 million debt exposure to the Cross City Tunnel in Sydney.
The toll road manager says it will also pay an additional fee of up $27.5 million over four years to RBS in the event of material traffic outperformance relative to Transurban's base assumptions.
The purchase is subject to regulatory approvals and final asset inspections.
RBS is the tunnel's sole secured creditor. In September receivers were appointed to oversee the tunnel holding and operating entities and commence a sale process for the asset.
Transurban and RBS have agreed during the transitional process to instruct receivers to continue with the sale process for the asset.
Transurban generated a net profit of $175 million in the 2013 financial year.
