The Australian fund First Sentier Investors -formerly called First State Investments- is exploring the sale of Parkia, the third-largest car park operator in Spain, according to various market sources familiar with the operation. To do this, it has already launched the process on the market to test the appetite of potential buyers, although the plan is first to refinance its debt. The company has engaged DC Advisory as financial advisor. The future transaction could reach a value close to 500 million euros.
The process is in an initial phase and for now First Sentier, which implements its infrastructure activity through Igneo Infrastructure Partners, is analyzing options to make its investment in Parkia profitable. The first approach is to undertake a refinancing of the debt in order to subsequently undertake disinvestment.
, when it agreed to purchase the shares of the Swedish infrastructure fund EQT (66.8%) and Mutua Madrileña (33.2%). The amount of the operation did not transcend, although the market then estimated that it was above 300 million euros. The Australian fund was then advised by Greenhill.
Parkia is currently the third largest car park operator in Spain, only behind Empark and Saba
EQT had acquired Parkia in 2011 from Acciona. In 2014 there was a merger at the car park level between EQT Infrastructure (the already existing Parkia) and Mutua Madrileña (Mutuapark), becoming one of the main underground car park operators in Spain.
Parkia is currently the third largest car park operator in Spain, only behind Empark and Saba and ahead of Interparking or Indigo. The company has 72 car parks with a total of nearly 38,000 spaces throughout the national territory and in Andorra -five assets with 2,806 spaces-. These are mostly long-term concessions, with an average life of 45 years, and mainly with municipalities. The operator has more than seven million customers and its workforce is made up of around 180 people.
Parkia car parks are mostly located in city centers and are open 24 hours a day, seven days a week.
Parkia’s car parks are mostly located in city centers and are in operation 24 hours a day, seven days a week, enjoying strong operating margins for the sector. In 2020, Parkia registered a turnover of 26.5 million euros, which represented a decrease of 31% compared to 38.37 million euros in 2019. A setback caused by the Covid-19 and the severe restrictions to imposed mobility. In 2021, demand gradually recovered -at the rate that restrictions were lifted- and today the levels of use are very close to -and in some cases higher- than those before the pandemic.
In 2016, the Australian firm signed a financing contract with Caixabank for an amount of 187.5 million euros
In this context of recovery, First Sentier has decided to start a process to monetize its investment in Parkia after six years in its capital. To do this, the fund plans to undertake the refinancing of the associated debt and thus prepare the company for its subsequent sale. In 2016, the Australian firm signed a financing contract with Caixabank for an amount of 187.5 million euros that served to refinance the bank debt that Parkia previously had, through a syndicated loan, with the Catalan entity and with the Bank Santander. The current financing consists of a loan of 180 million, of which Parkia assumes 168.47 million, and a line of guarantees for a maximum amount of 7.5 million.
First Sentier has appeared in recent times as one of the usual funds among potential buyers of renewable assets in Spain. In this sense, his name appeared among the applicants to take over Eolia and, more recently, in a process that has not yet been resolved.
Saba, without process for now
The Parkia sale operation reactivates significant business movements in the car park business in Spain. At the beginning of this year Portobello sealed the transfer of Eysa -specialized in regulated car parks-. For the next few months, the market expects Criteria to bring Saba back to the market. For now there is no formal process, according to knowledgeable sources. Similarly, the market is also waiting for Macquarie to make a move in the near future with Empark, which it took control of in 2017.
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