Invest in innovation in European airport parking for proven market-leading returns
Overview
AirPark One (“APO”) – since 2017
Proven airport parking concept in key European locations - currently operating very successfully at Frankfurt Airport
Established business model, now ripe for scale-up with readily accessible capex entry level
Reliable cashflows based on high occupancy and dynamic pricing model
An effective alternative use for underutilised or ‘hard to let’ real estate assets makes APO attractive to landlords
APO typically acts as the lessee via anexisting Op Co
Differentiators
Intuitive UX & easy customer journey
Online presence
Dynamic pricing and easy booking process
Shuttle bus
Every 30 mins in each direction
Convenience
10-12 minutes to terminal (in normal conditions)
Operational Efficiencies
Optimisation
Of admin and back-end, leading to cost-saving efficiencies
Channel partner sales model
Paid only on success
Low head-count and Opex
Low staffing requirements and non-intensive business model
Opportunity
Requirements
Facility type - senior debt alongside founder group equity commitments with option to convert into Ordinary Shares
3 x return of capital over a target term of c60months (a preferred return based on 75% of all retained earnings to go to lender until 100% of principal loan is repaid, then 50% until a further 200% has been attained)
One project at a time - potential future opportunities for follow-on investment in an eventual target portfolio of c10 operations in key European transport / aviation hubs
Capital requirements - c€350-€600k per project (agreed draw-down facility against pre-determined transaction metrics)
Typical features
Operational cashflows comfortably support anticipated debt obligations
Fiscally efficient corporate entity structures
Pipeline of high-quality target projects
Non-complex business - relatively uncorrelated to equity or fixed income markets
Demand drivers
Strong forward looking demand for product as air travel passenger numbers continue to rise
Worked example
Example facility based on a €500,00 investment
Indoor parking in an existing carpark
Start-up investments:
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Arivo barriers incl. installations €80,000
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IT and software €30,000
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Waiting room / office 54 m2 €45,000
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Water / drains / toilets €30,000
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Shuttle and signs €15,000
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Reconfiguration parking bays €50,000
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LED light changes €50,000
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3 months rent-deposit to landlord €200,000
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Total JV investment €500,000
Trading assumptions:
Income:
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Turnover €2,800,000
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Broker Comms €392,000
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Credit Card Fees €49,000
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Gross Income €2,359,000
Costs:
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Rent: 800/space €800,000
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Shuttle bus + airport acces €590,000
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Other fixed costs €345,000
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Anticipated marketing €100,000
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Total operational costs €1,835,000
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Net Operation Profit €524,000
NB: The above is based on mid-case income and cost assumptions from recent experience at Frankfurt Airport operation
Investor repayment
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In year-1 (75% split) Investor: €393,000 | APO: €131,000
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In year-2 (75% & 50% split) Investor: €295,000 | APO: €229,000
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In year-3 Investor: €262,000 | APO: €262,000
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In year-4 Investor: €262,000 | APO: €262,000
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In year-5 Investor: €262,000 | APO: €262,000
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During year 6 Investor: €26,000 | APO: €498,000
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Total Investor: €1,500,000