MPLRC holds a 55 per cent stake in Light Rail Manila Corporation (LRMC). LRMC has a 32-year concession to operate, maintain and extend the 20.7 km LRT1, a vital light rail infrastructure asset that connects the Northern and the Southern parts of Metro Manila.
Macquarie Capital ran a highly competitive auction process which attracted several global rail strategic investors. Macquarie Capital positioned the opportunity as a rare significant minority stake in a proven operating crucial transportation asset, with expansion, in a fast-growing economy.
Macquarie Capital provided strategic direction especially during crucial times marked by a volcano eruption in the Philippines in early 2020 that affected rail operations, and the impact of COVID-19. The transaction demonstrated seamless collaboration between the Manila and Tokyo offices of Macquarie Capital in advisory execution, and showcased our deep knowledge of the rail infrastructure business.
LRT1 is one of South East Asia’s first rail assets and the only privately-operated rail system in the Philippines. It currently has 20 stations and an average daily ridership of over 400,000 people. The Cavite Extension that will extend the rail system to 32.4 kms with an additional eight stations is expected to be operational in 2023.
With their global rail expertise, Sumitomo will significantly contribute to the efficiency of LRMC’s current operations, and will assist in further development of non-rail business opportunities.
Justin Ocampo – Head of Macquarie Capital, Philippines