The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor’s attention to recent developments within Japan as the city of Osaka look to privatize their subway rail network.

Osaka prefecture plans to privatize operations of its subway system, a move which could see the asset be valued at more than $5.9 billion, to private operators and investors according to prefectural Governor Ichiro Matsui. The possible sale and IPO of the rail network is part of a regional strategy involving the selling of state owned assets to reduce debt and foster additional investment.

“The prospect of seeing Japanese state assets and utilities as part of any IPO is by definition an attractive one. These are most often high quality, well maintained and modern concerns whose construction and upkeep have been high value projects, which if examined against additional growth in these areas, they become quite solid candidates for investment,” said Murakami Hiroto, Senior Vice President of the Global Investment Division at The Avanti Group.

With local governments in Japan, stepping up sales of public assets to cut debt, Osaka prefecture, which is home to electronics manufacturers including Panasonic Corp and Sharp Corp is privatizing state-run companies as well as meeting with investors including Caesars Entertainment Corp and Melco Crown Ltd on a planned $4.9 billion casino resort that will be built if legislative change is granted, a prospect that is increasingly seen as likely.

“Transportation infrastructure in Osaka, which may see it becoming home to Japan’s first casino and resort complex, will without a doubt increase in value as this becomes more certain. We know that the Japanese government is viewing proposals from both U.S and Macau based casino operators very favorably at the moment and a decision is expected in a timely fashion,” added the Senior Vice President at The Avanti Group.

Joining the Japanese capital Tokyo, whose metropolitan government is considering the sale of its 46.6% stake in that city’s subway operator, Osaka is seeking to sell off transportation infrastructure including that of Prefectural Urban Development Co, a light commuter rail operator, to the Nankai Electric Railway Co for ¥75 billion, whilst the state owned New Kansai International Airport Co has aligned itself with the Sumitomo Mitsui Financial Group as it seeks to sell off the rights to operate two of country’s largest airports to private concerns.

The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.