Liu, S; Jin, H; Liu, C; Xie, B and Mills, A (2020) Investment apportionments among participants of PPP rental retirement villages. Built Environment Project and Asset Management, 10(1), pp. 64-77. ISSN 2044-124X
Abstract
Purpose: The purpose of this paper is to examine public–private partnership (PPP) approaches for the construction of rental retirement villages in Australia and to allocate the investment proportions under a certain project return rate among three investors which are the government, private sectors and pension funds. The apportionment will achieve a minimum overall investment risk for the project. Design/methodology/approach: Capital structure, particularly determination of investment apportionment proportions, is one of the key factors affecting the success of PPP rental retirement villages. Markowitz mean-variance model was applied to examine the investment allocations with minimum project investment risks under a certain projected return rate among the PPP partners for the construction of rental retirement villages. Findings: The research findings validate the feasibility of the inclusion of pension funds in the construction of PPP rental retirement villages and demonstrate the existence of relationships between the project return rate and the investment allocation proportions. Originality/value: This paper provides a quantitative approach for determination of the investment proportions among PPP partners to enrich the theory of PPP in relation to the construction of rental retirement villages. This has implications for PPP partners and can help these stakeholders make vital contributions in developing intellectual wealth in the PPP investment area while providing them with a detailed guide to decision making and negotiation in relation to investment in PPP rental retirement villages.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | allocation models; investment; mean variance; pension fund; public–private partnership; rental retirement village |
| Index terms: | capital structure, negotiation, methodology, decision-making, Australia, private sector, partnership, investor, variance |
| Subjects: | economic analysis, measurement and scaling, sociology, decision analysis, conflict resolution, partnership management, industry analysis, research methods, Geography |
| Topics: | Business Strategy, Research Practice, Geographical Context, Risk Management, Stakeholder Management |
| Descriptive scope: | 4 PCTA |
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