Car parks are vital to the attractiveness, quality and effectiveness of urban infraestructure
Car parks are vital to the attractiveness, quality and effectiveness of inner-city infrastructure, contributing to the reduction of on-street parking and congestion of inner-cities. Bouwfonds Parking Real Estate invests in car parks located in densely populated and economically strong cities with strict and enforced parking policies, anchored to various vital economic activities: 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 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. Car parks are an attractive investment class because of their high Sharpe (risk/return) ratio – the vacancy risk is minimal and rental income is readily being substituted by parking income if an operator defaults. We select best-in-class international or local operators with a good track record to manage the car parks we invest in and pay a sustainable rent that has been derived at from long-term historical turnover figures.
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