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It's a record for global infrastructure, says KPMG

Written by  Justin Burns Friday, 15 November 2013 17:19

Global advisory firm, KPMG, says 2013 is set to be a record year for global transport infrastructure deals.

The firm says global transactions of transport infrastructure assets have risen steeply since the beginning of the year for airports, ports and highways projects.

According to KPMG, transport infrastructure assets were worth $16.6bn at the end of the 1H of 2013, this had risen to $23.5bn by the end of the 3Q.

This already surpassed every year since 2008 and was a rise on the $9.6bn taken in 2012 and $14bn in 2011.

The majority of assets  acquired in 2013 have been either in Europe or Asia.

London Stansted was bought by the Manchester Airport Group for £1.5bn ($2.4bn) and a nine per cent stake in London Heathrow was sold buy Spain's Ferrovial to Universities Superannuation Scheme for £395m ($636m).

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Steffen Wagner, KPMG's European head of transport M&A, says there are three main drivers for the trend. "Public budget restraints across debt ridden countries especially in Europe have forced national governments to privatise national infrastructure and look for private operators and investors in order to secure the operation of strategic transport infrastructure and hub networks.

"Secondly, private investors like pension funds are constantly looking for investment opportunities with steady cash flows and growth prospects and transport infrastructure targets including ports and airports can offer these opportunities.

"Thirdly, strategic investors are increasingly investing in infrastructure assets, especially in emerging markets where growth forecasts are significantly above the mature markets in Western Europe and North America," Wagner says.

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