PPT will partner with cities, municipalities and states toprovide alternative funding to projects that would be otherwiseunfunded, she says, by investing in properties or loans secured byproperties. Because these investments are sale-leasebacktransactions, the properties will be managed by the tenants.

Investment decisions will be made on a case-by-case basis, shesays, but generally sellers will have long-term leases withmultiple renewals and repurchase options.

The new company, Williams says in a statement, "will allow anygovernment, quasi-governmental organization, or not-for-profitentity--including those with limited sources of funding, borrowinglimits and other constraints--to unlock the embedded value withinits real estate. Public Property Trust will provide alternativefunding that can revitalize neighborhoods, fund new educationalfacilities, finance large-scale mixed-use projects, or supportongoing operations."