Retirement – Why the CPP is snapping up ports and dorms

Retirement – Why the CPP is snapping up ports and dorms

Posted by Admin1034 in Blog, Uncategorized 21 Mar 2016

When you buy a bond, you lend money and in return get a stream of interest payments, plus your money back at some future date. Student dorms are a good proxy for them. Along with the buildings, the rent is yours. Residences are always full, so like a bond they are a low-risk investment with a predicable, long-term return.

Rents rise with inflation, and not many new residences are being built. Toll roads and ports are similar; they’re expensive to build, there’s not much competition, and there are plenty of repeat customers. Think of the 407 ETR, which is 40 per cent owned by the CPP.

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