In situations where we can accelerate a Capital Improvement Program to take advantage of today's construction market, those savings can be in excess of 50%. Furthermore, the program shifts a significant amount of the risk away from the public sector and onto the private sector where it can be better managed and mitigated.
Richmond, Virginia (PRWEB) August 7, 2009
Moreland Property Group, Inc. (MPG) announced the expansion of its Social Infrastructure Development and Investment (SIDI) program to now include road, bridge and other transportation oriented assets. The SIDI program is designed to provide cities, counties, hospitals and higher education institutions with a cost effective alternative financing source for their capital projects. With this announcement, the Company can now provide the same cost-saving financing options to more traditional heavy infrastructure projects.
"Our program can typically save 7-15% when compared to issuing bonds and can reduce the project duration by 10-15%", said Brad Rodgers, President of MPG. "In situations where we can accelerate a Capital Improvement Program to take advantage of today's construction market, those savings can be in excess of 50%. Furthermore, the program shifts a significant amount of the risk away from the public sector and onto the private sector where it can be better managed and mitigated."
MPG has been working with select government and quasi-government agencies across the Mid-Atlantic region to finance and develop schools, roads, libraries, community centers and other social and transportation infrastructure projects. The innovative program is designed to be extremely flexible and work with each group's unique constraints and requirements. "Moreland has been great to work with. They have come up with solutions for new construction, renovations and even redirecting equity from existing facilities," said Jerry Baker of Howard Shockey and Sons, Inc., "They are extremely creative and find ways to make projects happen."
The SIDI program comes at a time when states and municipalities are facing declining revenues and increasing demands for services. These divergent economic forces are causing record budget deficits across the country. In addition, the stagnant municipal bond market has made traditional bond financing difficult and costly to obtain. MPG's SIDI program can bridge those deficits and provide an immediate source of capital. "Our capital is in-place and ready to go. It can be distributed in a matter of weeks, not months," said Rodgers.
That rapid deployment means projects are completed sooner and at a lower cost. Infrastructure projects are tremendous economic development drivers. The capital investments that are made today will be a magnet for residents, businesses and jobs. The sooner that those projects can come online, the sooner the recovery process can begin.
According to Rodgers, "this program is a great marriage of our company's capital markets, development and advisory experience. We are excited to be able to offer states and municipalities a way to save money and provide the services their constituents deserve. It is a 'win-win' proposition for everyone."
About Moreland Property Group:
Moreland Property Group is a real estate advisory company providing consulting, investment banking and development services to our partners. Based in Richmond Virginia, we work with institutional investors, municipalities and occupiers of real estate to develop and implement creative solutions that enable our partners with a significant competitive advantage in the marketplace. Over the past 12 years, the Principals of Moreland Property Group have worked with over 75 public, private and institutional partners on projects totaling over 110 million square feet and valued in excess of $6.3 billion.
Learn more at http://www.morelandproperty.com.
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