Today the world is full of huge projects, and the situation will be better in the future also. In the future many attractive deals are going to take shape and lend a new dimension to the infrastructure projects across the globe. The world needs new infrastructure in a big way and the demand is likely to soar up to $57 trillion worth over the next 15 years as per a study. There is no shortage of capital as Institutional investors see infrastructure as a great asset class.
How it will happen:
Giant sovereign-wealth funds are ready to put money and across all investor groups, more than $5 trillion a year is available to build airports, roads and ports. The challenge is to understand risk and policy uncertainties associated with potential deals. Investors are now considering the emerging markets; and are adopting a country-by-country approach to risk assessment. But identifying appropriate returns for each market they are viewing infrastructure projects by asset class, region, and stage of investment because of significant rewards.
Strategies:
There are many Greenfield assets and newly build infrastructure projects where investors are ready to take on the risk of development and construction. Moreover, there is a focus on Brownfield assets also.
There is a great need to create healthy environments in urban areas and have lasting infrastructure solutions in urban areas where the focus is on permeable pavements, rain gardens, green roofs and green spaces. Cities are required to implement green infrastructure strategies.
Read More:New horizons in Infrastructure - a look at the future
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