A consortium of Italian toll road developers — Atlantia and SIAS, together with the local bank, Mediobanca — has acquired the 50 percent share it did not already own in three Chilean toll road concessionaires.
From the Current Issue
Internet company Google and subsidiaries of Itochu Corp. and Sumitomo Corp. have teamed up with GE Energy Financial Services and developer and managing member Caithness Energy as investors in the 845-megawatt Shepherds Flat wind project under construction near Arlington, Ore.
Investors expect infrastructure investments to provide certain performance characteristics — cash yields, low volatility and inflation hedging are some of these — but it is not enough to simply acquire an asset and expect these benefits to flow forth. When setting expectations, investors should understand that how a transaction is structured is as important as buying a good asset in the first place.
In April 2011, Cohen & Steers published a white paper titled Listed Infrastructure: A Secular Investment Opportunity/An Emerging Asset Class, which provided a timely analysis of listed infrastructure markets. The following is a review of some of the paper’s main points, including recently announced government infrastructure sales, historical correlation between listed infrastructure and other asset classes, inflation and volatility, and emerging listed infrastructure structures.
Richard Little is a senior fellow in the School of Policy Planning and Development and director of the Keston Institute for Public Finance and Infrastructure Policy at the University of Southern California. He has lectured and published extensively on lifecycle management and financing of infrastructure, risk management, and decision making for critical infrastructure. Little was appointed to the California Public Infrastructure Advisory Commission to assist the state in implementing public-private partnerships (P3) for transportation. Institutional Investing in Infrastructure assistant editor Tyson Freeman spoke with Little about infrastructure investment in the United States.
AMP Capital, an Australian investment manager with $98 billion in assets under management, has raised an initial €241 million ($357 million) for its infrastructure debt fund.