A Chinese sovereign wealth fund, a Danish pension fund and a German insurer are among investors in a consortium to buy the largest owner and operator of parking infrastructure in the US.
The consortium led by TIAA Private Investments and Antarctica Capital are buying InterPark from Alinda Capital Partners.
Investors include sovereign wealth fund China Investment Corporation (CIC), insurers China Life and Munich Re Group, and Denmark’s PFA Pension.
Silverpeak Real Estate Partners, another member of the consortium, will focus on real estate and development opportunities.
TIAA Private Investments, an affiliate of Nuveen, and Antarctica will serve as the consortium’s manager through a joint venture led by TIAA Private Investments.
The joint venture will work with InterPark’s existing management team to provide expertise that will enable the company to optimise and grow its operations.
Marietta Moshiashvili, managing director and head of energy and infrastructure asset management at TIAA Private Investments, said: “The transaction represents an opportunity to invest in core parking assets located in prized locations across the US that exhibit highly recurring and defensive cash flows.”
InterPark’s portfolio of 57 parking garages and surface lots contain over 49,000 spaces and are spread across major central business districts and airports, including Atlanta, Baltimore, Boston, Chicago, Houston, Minneapolis, Philadelphia, Phoenix, San Francisco and Washington, DC.
Philipp Klingelhofer, managing director of Antarctica Capital, said: “InterPark’s assets provide compelling opportunities to benefit from strong urbanisation and urban core densification trends.”
Qing Zhang, executive vice president of CIC Capital Corporation, said: “The InterPark investment has the elements of real assets and stable cash flows along with growth potential, which all fit into CIC Capital’s infrastructure investment strategy.”
Fengming Zhang, president of China Life Investment Holding Company, said: “We believe infrastructure investment can offer a welcome addition to a balanced and diversified portfolio.
“This transaction marks a big step for our firm, extending our global partnership with like-minded investors.”
Holger Kerzel, managing director at MEAG, the asset management arm of Munich Re, said: “This investment in US parking infrastructure further diversifies our portfolio and helps us generate sustainable, calculable cash flows that make a valuable contribution to covering Munich Re’s liabilities.
“The US market is a clear focus area for MEAG reflecting Munich Re’s substantial core business in North America.”
PFA’s chief investment officer Henrik Nøhr Poulsen, said: “We are glad to be part of the strong international consortium that is buying Interpark. All investors have been contributing actively to the completion of the transaction.”