UK Infrastructure Investment: HM Government

 

It was last week (late June) that HM Government announced major infrastructure investment in the region of £100 Billion

[https://www.gov.uk/government/organisations/infrastructure-uk]

It effectively is a Keynesian view to spend our way out of recession and kick start growth.

[https://www.gov.uk/government/publications/investing-in-britains-future]

The reality is like in the USA and continental Europe, infrastructure investment has been a low government priority, and we see aging bridges, old train lines that lack passenger capacity, so there is a real need to build new infrastructure, reduce overcrowding, replace ailing infrastructure and create prosperity too.

Already in the UK, there are FTSE listed companies specialising in infrastructure:

John Laing Infrastructure:[http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=2510086&action=]
Gives a 5% yield from its juicy dividend.

GCP Infrastructure: [http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=2484512&action=
Gives a 6% yield from its delicious dividend.

Also there are funds that invest in Infrastructure:
First State Global Listed Infrastructure [http://www.firststate.co.uk/uk/private/Funds/Global_Listed_Infrastructure/] that invests in companies like National Grid, Crown Castle International, Scottish and Southern Energy as just three names in the fund.

Also there are now specialist investment managers specialing in Infrastructure, like Infracapital.
[http://www.infracapital.co.uk/]
They are a part of M&G Investments [wwww.mandg.co.uk] who are a owned by Prudential [www.pru.co.uk] the UK insurance giant.

The facts are simple, about 65% of the UK’s infrastructure is already privately financed and with Government spending under massive pressure, HM Government has to ask the private sector to undertake infrastructure investment, and funding will come from companies and funds to undertake this investment.

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