Institutional investor Just Group has pumped £20m into the M6 toll road, in the form of a 22-year loan to the Midland Motorways Group, despite traffic volumes continuing to fall on the route.
Midland Motorways Group finances and operates the 27-mile M6 toll motorway, under a 53-year concession agreement with the government, running from 26 January 2001 to 2054.
Just Group manages over £27bn of retirement savings, of which more than £3.6bn has been invested in dedicated sustainable assets such as renewable energy projects, affordable and social housing, clean transportation and other social assets.
The investment firm said the funding will inject long-term, institutional capital into the M6 toll road project and contribute to upgrades, such as smart motorway integration and modernised tolling systems. There are also plans to expand the road’s electric vehicle infrastructure.
The company added that theinvestment will also help secure “tangible public benefits” and support the UK’s broader goals for sustainable growth and infrastructure renewal.
Mohamed Tabi, Just Group director of credit and portfolio management, said, “As a UK institutional investor deploying pension capital, Just is well-positioned to finance nationally significant infrastructure that delivers long-term economic and social value.
“With a strong track record in private assets and a strategic focus on resilient UK investments, we are pleased to support the M6 toll road’s continued development on enhancing journey reliability and reducing emissions in the West Midlands.
“We help people achieve a better later life – it’s Just’s purpose and investments like this that help us fulfil that purpose by providing certainty through long-term fixed rate financing into the economy.”
Midland Motorways Group recently posted pre-tax profits of £100.8m for the year to 31 December 2024, up from £95.9m in 2023, whilst revenues jumped from £134.9m to £139.3m over the same period, despite traffic volumes falling.
M6 toll road traffic volumes fell by 6.2% in 2024 to 16.6 million vehicles (2023: 17.7 million), with annual average daily traffic at 45,287 vehicles (2023: 48,463).
The company said traffic had been impacted by a number of factors including improvement works on the M42 during the period and predicted that volumes would continue to be hit for some time ahead.
However, it added that HGV and van traffic had increased in the period thanks to “early deployment of ANPR trials offering frictionless ANPR journeys linked to online payments and simpler fleet management”.
