When Primevest Capital Partners launched its first-ever car park fund some 20 years ago, we did so on the back of strong underlying fundamentals: scarcity of product; not easy to substitute and stable and long-term income. While much has changed today, not least because car parks have become a sought-after asset class in their own right, the drivers of performance remain the same. Investor demand for these assets now significantly outpaces supply. With a proven track record and over €1.5 billion invested in car park assets across six Pan-European funds, we continue to actively pursue new acquisitions.
Car parks are central to improving the quality attractiveness and effectiveness of the urban realm. They make city centres better places for their residents, by helping to reduce congestion, create relief in the public realm and improve accessibility. This is particularly so in densely inhabited urban areas. As on-street parking spaces become scarcer and more expensive and city populations increase, the demand for off-street car parks is growing, providing upward pressure on parking tariffs. Constrained supply and reliable income streams make this an attractive asset class to invest in.
Our in-house team, many of whom have worked for car park operators, also understand how best to manage these assets. Vacancy risk is minimal, virtually non-existent, because it can be readily substituted by parking income if an operator defaults. Rental values have risen strongly historically, as increased turnover outpaces inflation. Finally, as urban land values climb further, the inner-city location of many car parks means there is always the option for redevelopment.
Investment Criteria
We acquire car parks located in high-density, economically-strong cities, where parking policies are strict and rigorously enforced. We choose busy locations such as city centres with their concentrated business, retail, leisure and residential activities, or near hospitals and transport hubs such as railway stations and airports. We partner with best-in-class international or local operators with good track records and with whom we contract long-term indexed leases, which yield stable cash flows and income growth above inflation at sustainable rental levels.
These criteria have served us well and delivered attractive risk-adjusted returns for our investors over many years.
Download Investment Criteria Car Parks:
