New roads open for investors
New roads open for investors
- 2006
- EuroProperty March 2006, 19(1) .
Property investors are becoming more interested in infrastructure investment. One advantage is that it is less exposed to the economic cycle than real estate. Infrastructure also shares two important characteristics with property: long asset life and low return volatility. The gearing level for investors is also similar, at anything between 30% and 90%. However, the physical scale of infrastructure assets also presents big risks for investors. Managing the infrastructure also requires more specialist knowledge than managing property. Government projects are also becoming increasingly reliant on the private sector to help fund projects.
Property investors are becoming more interested in infrastructure investment. One advantage is that it is less exposed to the economic cycle than real estate. Infrastructure also shares two important characteristics with property: long asset life and low return volatility. The gearing level for investors is also similar, at anything between 30% and 90%. However, the physical scale of infrastructure assets also presents big risks for investors. Managing the infrastructure also requires more specialist knowledge than managing property. Government projects are also becoming increasingly reliant on the private sector to help fund projects.