The "missing link" in the San Diego highway network

 

 

 

 

 

 

 

 

 

 

 

 

Nature of the asset

State Route 125 South was renamed the South Bay Expressway on 22 July 2005.

Opened on 19 November 2007, South Bay Expressway is a four lane, 14 km toll road. The road links State Route 905, adjacent to the Mexican border, to State Route 54 in Bonita.  It provides an alternative route east of the heavily congested North/South State Route 805 and Interstate 5 in the San Diego region of Southern California.

The design of the toll road allows for expansion to three lanes (southern section) or four lanes (northern section) in each direction to meet future traffic increases. The government is also constructing two untolled sections at the northern end of South Bay Expressway. The first is the “connector”, a 4 km four lane section that links the northern end of South Bay Expressway with State Route 54. At the intersection between the connector and State Route 54, the “gap” is being constructed. The gap is a freeway-to-freeway interchange that involves the reconstruction and expansion of an existing section of State Route 54. Both the gap and the connector will  play an important role in linking South Bay Expressway to the existing San Diego freeway network in the north.

South Bay Expressway was MIG's first investment in the US. The acquisition assisted MIG to establish credibility in the United States and increased the geographic diversification of MIG's portfolio.

Nature of the investment

The South Bay Expressway concession was awarded by the State of California Department of Transportation to San Diego Expressway Limited Partnership (SDELP) in 1991. In September 2002, MIG acquired an 81.6% stake in SDELP. In May 2003, MIG acquired the remaining 18.4% of SDELP.

In December 2006 MIG divested 50% of its interest in South Bay Expressway to Macquarie Infrastructure Partners (MIP), retaining a 50% interest in the asset.

Construction was funded through senior bank debt of US$321 million, US Government concessional debt of US$154 million and equity of US$160 million. The SR125 South project was selected as an eligible project for funding from the United States' Transportation Infrastructure Finance and Innovation Act (TIFIA) program. The TIFIA loan is the first ever provided to a private toll road development.

Asset map