Car Parks

Enabling Mobility

Car parks are central to improving the quality attractiveness and effectiveness of the urban realm. They make city centres better places for their inhabitants, by helping to reduce congestion and improve accessibility.

 
 
 
     
 

Europe’s largest car park asset investment manager

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 far exceeds supply and with a strong track record and over €1 billion invested in car park assets across six funds, we remain acquisitive.

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:

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Our investment funds

 
 
 
 

‘Car parks provide an essential role in our city centres and will continue to do so as on-street parking is removed.’

Ruud Roosen , Fund Director

 

Our experience

Car parks are fundamental to enabling mobility in Europe’s high-density city centres and have proven to be resilient, even in periods of economic instability. As city centres increasingly restrict on-street car parking, either by the removal of spaces or increasing already high on-street parking fees, we believe these assets will play a fundamental part in the evolution of our cities. 

 
 

The Future

Even if car use does decline, which we doubt, car parks will remain an essential feature of our urban realm. We foresee a number of advances, some driven by social and environmental needs and others by technological advances that will continue to protect and enhance the value of these assets. We envisage car parks turning into ‘mobility hubs’, becoming essential urban infrastructure supporting the evolution of our cities.

 
 

We already see our car park investments being transformed from single-purpose garages into mobility centres with multiple uses, including data nodes, charging points, e-commerce pick-up centres and catering delivery hubs and thus becoming essential urban infrastructure. These mobility hubs support city authorities in their goal to reduce private-car access to city centres, replacing them with more environmentally-friendly alternatives.

New links to mobile apps are helping people, and perhaps in the future driverless cars, to find parking spaces more efficiently, thus reducing congestion and polluting emissions.

Despite appearances, car parks are anything but dull. Having spotted the opportunity of this asset class in 2011, we have grown to become Europe’s largest car park asset investment manager.  We have over €1.0 billion in assets under management across five car park funds, with the latest one still in acquisition mode.

 

 
 

Environmental and Social

  • Improving cityscapes by removing on-street parking and replacing this with greener and more welcoming urban spaces, as has been implemented in cities such as Amsterdam and Oslo, means that demand for off-street parking increases. By parking and then accessing the city though more city-centric modes of transport, such as bicycles, electric trams and buses, pollution and congestion can be reduced. Car parks also have low levels of environmental impact because their energy consumption is relatively limited.

Technological

  • Smart car parks already feature in many cities today, where urban authorities and operators cooperate to optimise their use with technology. This too has a positive effect on congestion and the environment by directing drivers to the nearest available parking space. The introduction of 5G networks will speed up this process
  • Electric-car charging hubs – as more and more electric and hybrid vehicles are introduced, there is a corresponding rise in demand for charging points and many car parks are now offering this service.
  • Last-mile delivery – Pick-up lockers, last-mile storage and air-conditioned units can be included in car parks, enabling a centralised delivery point for large vehicles to drop off packages, which are then delivered by less-polluting vehicles, or collected by the end user at their convenience.

The future role of car parks in enabling mobility [link here to blog] in our city centres is one fundamental that was not included as an investment criterion when we launched our first fund 20 years ago, but it is now.

 
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Projects

 
 
 

Car park in Amsterdam, The Netherlands

The car park Mahler is located on the multifunctional Zuidas in Amsterdam, which is the leading prime Central Business District in the Netherlands.
 

Car park Leipzig, Germany

Primevest acquired car park Augustplatz in Leipzig in 2012 for the European…
 
 

Car park Vienna, Austria

Primevest Capital Partners has acquired the two purpose-built multi-storey car parks, a…
 
 

 

Investing in future cities

News

 
 
 
22.01.2021   News

Primevest Capital Partners acquires two multi-storey car parks in Vienna…

Primevest Capital Partners has acquired two newly built multi-storey car parks, a supermarket and a commercial unit in Vienna for around 20…

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