PSP Investments buys $2.4B stake in Ontario toll highway
407 ETR, which runs from Burlington to Pickering, is privately leased and operated.

Key Takeaways:
- PSP Investments is making its largest Canadian infrastructure commitment by acquiring a 7.51% stake in the 407 Express Toll Route (407 ETR) for about $2.39 billion, with an additional deferred payment due within 18 months.
- After these transactions, the new ownership breakdown will be Ferrovial at 48.29%, CPP Investments and other institutional investors at 44.20%, and PSP Investments at 7.51%, with AtkinsRéalis exiting as a shareholder.
- PSP Investments aims to leverage its transportation sector expertise to support the long-term stability of the 407 ETR, aligning with its broader infrastructure strategy and strengthening partnerships with CPP Investments and Ferrovial.
The Whole Story:
One of Canada’s largest pension investors is getting into the highway business.
Public Sector Pension Investment Board (PSP Investments) announced that it has entered into agreements to acquire a strategic interest in 407 Express Toll Route (407 ETR), an all-electronic, barrier-free, toll highway spanning 108km in the Greater Toronto Area, from investment management organization Canada Pension Plan Investment Board (CPP Investments).
407 ETR is a privately leased and operated toll highway in Ontario. It is part of Highway 407, which spans the entire Greater Toronto Area (GTA) around the city of Toronto. The 407 ETR specifically refers to the 108.0 km (67.1 mi) segment from Burlington to Pickering
PSP Investments will add this 407 ETR investment to its global portfolio of road assets through the acquisition of a 7.51% stake for a purchase price comprised of approximately $2.39 billion payable at closing, and a deferred payment to be made up to 18 months after closing.
Simultaneously, engineering services and nuclear company AtkinsRéalis will enter into agreements to sell its remaining 6.76% stake in 407 ETR to CPP Investments and Ferrovial, a global infrastructure company. CPP Investments expects to acquire a 1.70% interest in 407 ETR from AtkinsRéalis, on the same basis as the deferred portion of the purchase price paid by PSP Investments. Net proceeds to CPP Investments from all of the applicable transactions are expected to be approximately $2.39 billion for a net 5.81% interest sold after closing.
Following completion of these transactions, ownership control of 407 ETR is expected to be attributed as follows: Ferrovial at 48.29%, CPP Investments and other institutional investors at 44.20%, and PSP Investments at 7.51%. AtkinsRéalis will cease to be a shareholder.
“We are pleased to join CPP Investments and Ferrovial in the 407 ETR ownership group. PSP Investments has deep expertise in the transportation sector and will support the long-term stability and reliability of this critical road that services more than 3 million Canadians each week,” said Sandiren Curthan, Managing Director and Global Head of Infrastructure Investments, PSP Investments. “Our investment in 407 ETR represents our largest infrastructure commitment in Canada to date and exemplifies our broader infrastructure strategy.
James Bryce, Managing Director, Head of Infrastructure, CPP Investments explained that tge transaction enables CPP Investments to optimize returns for CPP contributors and beneficiaries while building stronger ties with valued partners and continuing to own a significant stake in a high-quality business.
“We look forward to partnering with PSP Investments, Ferrovial and the management team, as the 407 ETR continues to deliver excellent service to the millions of individual and business customers who use the highway,” he said.
Here is a timeline of the highway’s history:
- 1994: Design-build contract awarded for initial construction
- 1997: Initial 68 km concrete toll motorway opened in October
- 1999: Ontario government announces privatization of Highway 407
- 2001: 39 km of extensions completed (24 km west, 15 km east), bringing total length to 108 km
- 2011: $35 million lane-widening project completed from Highway 403 to Highway 401 in the west, and from Highway 400 to Highway 401 in the east
- 2012: Construction begins on Highway 407 East project
- 2016: Phase 1 of Highway 407 East opens on June 20, extending 22 km to Harmony Road in Oshawa, including Highway 412
- 2018: Phase 2A opens on January 2, adding 9.6 km extension to Taunton Road
- 2018-2019: Widening project between Markham Road and Brock Road completed
- 2019: Phase 2B opens on December 9, adding 23.3 km extension to Highway 35/115, including Highway 418