UK Infrastructure Private Equity Investment Opportunity
All of the private equity investments in the United Kingdom are not future looking or technology based. Infrastructure, also known as things that crumble, has become a substantial private equity investment opportunity. Major equity funds from the United Kingdom and the United States are looking at the future of U. K. infrastructure as a source of financial growth for investors.
The interest just makes good common sense. Government has made a major investment in infrastructure. The nation’s financial future depends on reliable transport. Brexit may produce some near term fluctuations but infrastructure will expand in the long term. The United Kingdom does lag behind many countries in maintaining and developing infrastructure.
The local and national governments of the United Kingdom have for once been looking ahead. Programs have been in places that have supported infrastructure development for the inner cities in the U. K. and the Northern Powerhouse. Still the majority of the money is spent in or around London.
The move by government is in response to the lack of affordable housing. The idea is that revitalization of existing inner city areas and Brownfield real estate is economically sounder and more readily achievable than new construction. The government has gone so far as to change the housing legislation to make the planning application approval process faster and simpler for Brownfield properties.
The return on investment in a Brownfield infrastructure private equity investment opportunity is generally much higher than competitive equity funds that target infrastructure. Rates of return on invested capitol of 25 percent per year are sustainable.
There are several factors that make this infrastructure private equity investment opportunity ideal.
Population growth and the lack of affordable housing have created a large target housing market. University residences and homes for middle and lower income people are supported by government programs.
The investor does not own the property. This means the investor does not pay all of the burdensome taxes that owning a property entails. The investor is not involved in management of the property n any way.
The government of the United Kingdom has created a Brownfield buyer’s market. The idea is to find the right property and hold it for a short time. Ideally, a developer who plans to build will already be willing to acquire the property.
The speed of transfer of any property is accelerated by involving local experts in each phase of the evaluation on an as needed basis. Local people know who to deal with to make things happen as quickly as possible.
The firm represents the investors. Internal expertise, solicitation of local experts, and targeting of the best Brownfield properties in an opportunistic manner produces higher rates of return.
Contact Highgrove Consulting (http://tinyurl.com/ya7txza5) if a private equity investment opportunity based on infrastructure that provides a high rate of return with minimal investor involvement interests you.