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Investing in Infrastructure

Posted by: Nate Berg

20 November 2009 - 7:00am

Private investors are increasingly putting their money into infrastructure assets like bridges and windmills.

Target returns on these infrastructure investments are in the 12%-18% range, which may seem low for some investors, but they're winning more interest as government bond returns fall close to zero during the recession.

"Infrastructure has long been the domain of institutional players but has now emerged as a mainstream alternative for wealthy investors burnt in the credit crunch by a related asset class, real estate.

A vote of confidence in the sector came recently from no less an investor than Warren Buffett, who bought out rail group Burlington Northern for around $26-billion (U.S.)."

Full Story: Rich, and bored with bonds? Buy into a bridge
Source: The Globe and Mail, November 16, 2009
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These practices are also inequitable since they force non-drivers to subsidize parking costs, reduce travel options for non-drivers, and reduce housing affordability.
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