Investing in car parks
Scarce product – Not easy to substitute – Stable long-term income
Why investing in car parks?
Car parks are vital to the attractiveness, quality and effectiveness of inner-city infrastructure, contributing to the reduction of congestion of inner-cities and contributing to the city’s accessibility. Therefore, car parks play and will continue to play an important role in densely populated areas. Parking spaces are scarce in dense inner-cities but the number of cars and number of households keep on growing. This creates pressure and therefore the possibility to increase parking rates. The scarcity and stable income producing nature of car parks makes this asset class an interesting one to invest in.
The vacancy risk is minimal to non-existent because rental income is readily being substituted by parking income if an operator defaults. This is what we call double secured income (parking customer and operator). Furthermore, historically the rental value of car parks have risen strongly due to the increasing parking turnover which outpace inflation.
How do we invest in car parks?
Primevest Capital Partners invests in car parks located in densely populated and economically strong cities with strict and enforced parking policies, anchored to various vital economic activities like: working, retail, leisure and/or residential, or in car parks located at hospitals or at infrastructure hubs such as railway stations or airports. We contract long-term, indexed leases yielding stable cash flows and income growth above inflation. We select best-in-class international or local operators with a good track record to manage the car parks we invest in. We focus on sustainable rents that has been derived at from historical turnover figures.
We invest for the long term and offer our investors an attractive risk-adjusted return driven by a favourable fundamental outlook: car ownership is projected to increase over the long term and cars will remain important to reach inner-city destinations.
Want to know more about investing in car parks? Get in touch with us.
Link to our investment criteria
Car park investment criteria