Infrastructure manager Stonepeak has completed the acquisition of Chicago Parking Meters (CPM) from a consortium comprising Morgan Stanley Infrastructure Partners (MSIP), Allianz and a subsidiary of the Abu Dhabi Investment Authority in a reported $2.53bn (€2.25bn) deal.
CPM operates, manages and maintains Chicago’s on-street metered parking system under a long-term concession, encompassing more than 38,000 metered spaces, including nearly 10,000 in downtown Chicago.
The transaction closed following approval from the Chicago City Council in late September. According to the approved ordinance, Stonepeak will make an upfront payment of $75m in community benefits funds to the City of Chicago upon execution.
The updated concession agreement also introduces a 5% annual share of net income for the city, alongside a 2% fee on the total purchase price for any future ownership transfers requiring municipal approval.
All payments received by the city from the agreement will be allocated to fund municipal pension contributions.
Rob Kupchak, senior managing director and head of core investing at Stonepeak, said: “On-street parking is a critical component of Chicago’s transportation network, providing an important service for residents, visitors, and local businesses.
“As long-term infrastructure investors, we have strong conviction in investing in the City of Chicago and are committed to working hand-in-hand with all of its stakeholders to serve as a reliable operator, a transparent partner and a constructive member of the community.”
Jim Wilmott, managing director for Morgan Stanley Infrastructure Partners, said: “Over the course of our ownership in CPM, MSIP has been able to execute on key value creation levers and grow the business into a leading parking concession with best-in-class management, technology and operations.”
Dennis Pedrelli, CEO at CPM, said: “We’re excited to work alongside Stonepeak and LAZ Parking, our longtime operator, to continue improving and modernising Chicago’s on-street parking system.
“We believe partnering with Stonepeak – an investor with deep experience in the transportation and logistics sector, and an extensive footprint in Chicago through its existing investments – is the optimal outcome for the City as residents and visitors continue to rely on this essential infrastructure asset well into the future.”
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