Cezary Podkul
The firm has also shut down its $500m North American Infrastructure Fund. RREEF's real estate operations have not been affected.
State-owned properties totaling $1bn are being considered as candidates for sale-leaseback, among them 11 prisons, a hospital and Arizona's House and Senate Capitol buildings. Arizona is considering the asset sales as it struggles with a $3.4bn budget deficit.
The firm has thrown out the classic 2-and-20, charging LPs 15% carry and up to 1.5% for management fees
A high-profile, long-term leasing proposal has met a challenge from two major private investment groups, whose proposals will now be considered alongside the bid submitted by CalPERS-backed real estate firm CenterPoint in March. At stake is what could become the first long-term lease of an entire US port.
The $119bn pension’s new ‘absolute return’ asset class will include infrastructure investments and could lead to a search for a manager to run the investment programme. The move is part of a wider asset allocation shift to be unveiled at its August meeting after CalSTRS saw its portfolio value tumble 25 percent over the last year.
An exclusive gathering in California hosted by Stanford University sheds light on what pensions are seeking from infrastructure managers – and what the pensions might do if they don’t get what they want, writes Cezary Podkul.
Principals from Carlyle, Macquarie, RREEF and Industry Funds Management gathered today cautioned that market will not develop across America’s ‘fifty little countries’ without strong leadership from the government in creating incentives for private investment in infrastructure.
Speakers at the Terrapinn Infrastructure Investment World Americas conference in New York criticised the conventional wisdom regarding such assets as ‘too simplistic’ since brownfields, or operational infrastructure assets, can in practice be more risky than greenfields, or new development projects.
Counterparties to the largest long-term lease of an airport in US history agreed not to extend a deadline for financial close. A Citi-led consortium secured debt for the deal but fell short in raising more equity for the upfront fee. Chicago intends to rebid the airport.
The German construction giant will modernise and expand three existing schools and construct a new school center in Bavaria’s Hof district. The PPP is expected to cost €50m and will require Bilfinger to operate the schools for 21 years.