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New specialty REITs may star in Trump’s infrastructure rebuild

November 29, 2016

New specialty REITs may star in Trump’s infrastructure rebuild

Thomas Yeatts | S&P Global Market Intelligence

The REIT industry, led by a vanguard of potential new niche players, could play a significant role in president-elect Donald Trump’s plan to rebuild the country’s infrastructure via a range of new public-private partnerships, observers say.

In his “Contract with the American Voter,” Trump promises $1 trillion in infrastructure spending over the next 10 years, and he vows that his plan will be revenue neutral through its use of public-private partnerships, also known as “P3s,” and “private investments through tax incentives” — a financing approach that would represent a departure from the more traditional avenue of utilizing government-sponsored entities.

There are two main types of P3s: brownfield projects and greenfield projects. In brownfield projects, the public sphere cedes to a private entity — in this case a publicly traded REIT — a long-term concession for assuming responsibility for the operation and maintenance of a publicly owned asset. For greenfield projects, the REIT or other private entity would take part in the creation of new public assets by assisting in their design, financing, build-out and operation, and it would retain the right to earn revenue directly from the projects.

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Second Annual Blue Vault Broker Dealer Educational Summit 2016
Broker Dealer Educational Summit 2016
April 14, 2016

The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.