KPMG predicts record year for transport infrastructure deals
2013 is poised to be a record year for transport infrastructure deals, according to infrastructure consultants KPMG, following major UK deals such as Manchester Airport Group’s acquisition of Stansted airport.
Deal values for global transactions of transport infrastructure assets including airports, ports and road operations have risen steeply since the beginning of the year, reaching $23.5bn or roughly £14.57bn by the end of the third quarter.
This figure already exceeds total annual deal values for every year since 2008, the KPMG research claims.
KPMG's graph shows a good year for transport infrastructure
Steffen Wagner, KPMG’s European head of transport mergers and acquisitions comments: ‘There are three main drivers behind this 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.’
Assets in Europe and Asia have made up the lion’s share of the deals, with the UK seeing major deals such as the acquisition of Stansted Airport by Manchester Airport Group for £1.5bn and the sale of a 9pc stake in Heathrow airport by Spain’s Ferrovial to Universities Superannuation Scheme, one of the UK’s largest pension funds, for £395m.