MacBank buys a spot to park Daily Telegraph November 19, 2005
WHEN you are one of the world's largest tollway owners a next logical step is buying the car parks, and that's what Macquarie Bank did yesterday in an $870 million New York deal.
Macquarie linked with a group of industry superannuation funds to take over Manhattan car park firm TMO Parent LLC, which operates as Icon Parking Systems, for $869 million.
The new buy may soon join Macquarie's growing stable of listed companies with a public float being considered for 2006.
The group, which includes MTAA Superannuation Fund, Australian Retirement Fund, Westscheme and Statewide Superannuation Trust, said an option was to include Icon Parking in a possible Macquarie-managed fund float next year.
Icon Parking, established in 1947, owns 192 off-street car parking locations in New York City with all but three in Manhattan.
The significant majority of Icon Parking's facilities operate under long-term leases, with the remainder mostly on owned sites.
Macquarie also operates the US-listed entity Macquarie Infrastructure Company which is the largest owner of off-airport car parks in the US and runs tollroads in six countries including the Chicago Skyway Tollway and Dulles Greenway in Virginia.
Macquarie Bank chief finance officer Greg Ward said Icon Parking holds a top two market position by revenue and by number of locations in a supply-constrained sector.
"The Manhattan off-street parking sector operates with appealing market dynamics," Mr Ward said. "The sector has demonstrated average historic growth rates above inflation."
Macquarie said many of the customers using Icon Parking, which are open 24 hours a day, seven days a week, are long term or renew monthly.
A spokesman would not comment on whether Macquarie would consider acquiring cars parks in Australia, but said the US acquisition fits its strategy.
Macquarie Bank will put up $170 million of the consortium's $323 million in equity, a 52.5 per cent stake.
The remainder of the enterprise value will be funded by assuming Icon Parking's existing debt, including senior and mezzanine debt, as well as other borrowings, Macquarie said.