Unlocking Value Through Asset Recycling

Raghu Dharmapuri Tirumala () and Piyush Tiwari
Additional contact information
Raghu Dharmapuri Tirumala: University of Melbourne

Chapter Chapter 8 in Advances in Infrastructure Finance, 2023, pp 187-208 from Springer

Abstract: Abstract Raising of financing for infrastructure projects by unlocking the value of existing assets is a new method that has gained momentum world over. For the continued success of this method of financing, it is essential that the asset recycling is designed in such a manner that private sector shows interest to participate. Australia has been one of the leading countries to have initiated this method of raising finances. The asset included approach included attracting investments from pension funds, sovereign wealth funds (SWFs), and private investment funds in core infrastructure projects. The monetary value that the private sector perceives in such asset monetization transactions varies from region to region and is influenced by the prevailing conditions. The charm of the asset recycling is that this modality is perceived to be a potential fast track mechanism to bridge the infrastructure gap. The proponents of the asset recycling to be used as a mainstream option for financing new infrastructure assets have argued their case based on the benefits that are likely to accrue to the government, private sector, and the public. The cycle of asset recycling can repeat itself, with the assets developed through an earlier asset recycling initiative become cash flow steady and are then ripe for being hived off in a subsequent asset recycling scheme.

Keywords: Asset monetization; Asset recycling; Asset recycling initiative (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-99-0440-2_8

Ordering information: This item can be ordered from
http://www.springer.com/9789819904402

DOI: 10.1007/978-981-99-0440-2_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().