WASHINGTON — Real estate investment trusts could be the next frontier for infrastructure financing, according to a report released yesterday by Deloitte LLP, a member of Deloitte Touche Tohmatsu, a Swiss association. But legislation is needed to clarify questions of eligibility if public-sector entities want to secure REIT investments, the report said.
Currently, investment partnerships for infrastructure projects and assets generally follow a public-private partnership model wherein private investors or a fund enter into agreements with governments or other public-sector entities. The private-sector party provides compensation to the public-sector entity, and some service, often to design, finance, build, operate, or maintain a facility, such as a toll road. In exchange, the private-sector party takes responsibility for, and receives income from, the facility.