Out of all the different commercial investment opportunities car park investment has proven itself to be a reliable source of income for many investors. The parking industry generated more than $20 billion annually in gross parking revenues according to The International Parking Institute.
According to the Which? Guide to Parking, there are around 29 million parked vehicles in the UK at any one time.
This combined with the fact that the RAC Foundation (2011) has predicted that there will be around four million additional cars on UK roads in the next twenty years, highlights the continual requirement for parking facilities.
A Car park investment in a strong location can provide investors with high yields, as the parking spaces themselves command a high premium. Covered parking facilities in Central Business Districts and City Centres are convenient for drivers, with surveillance and clear pricing structures offering added security for motorists. These type of car parks are almost always full meaning the management companies can offer assured yields to the investors.
UK Car Park Investment
For investors interested in a car park investment, Experience International has just launched its first affordable car park investment opportunity in the UK, Manchester, providing a 10% Net rental assurance in place for the first 2 years.
As with most commercial property investments location is the key to success. Named as the UK’s fastest growing city, Manchester’s City Centre alone has a population of 498,800 (Manchester City Council 2010) and is popular with both businesses and tourists.
What’s more, Colliers International’s 2011 Global CBD Parking Rate Survey has revealed that daily parking rates in Manchester are the 3rd highest in the UK, with only London and Edinburgh ranked above the city.
Since 1997, Manchester has undergone a lot of regeneration with around £700 million invested in transforming the city into one of Europe’s leading cultural and economic hubs. The regeneration has established Manchester as a popular choice for tourists with the city ranked as the 3rd most popular UK tourist destination by VisitBritain and the Office for National Statistics in 2011.
Generating around a third of the region’s wealth (equal to Liverpool, Sheffield and Leeds combined), Manchester is home to many businesses in the Financial Times Top 100 Companies and is also listed in the world’s Top 50 Conference Destinations.
“A tried and tested investment, we’re pleased to promote our first UK car park investment,” Steven Worboys, MD of Experience International commented. “This investment offers our members a low entry into an established international commercial market and proven double-digit returns.”
Investor can purchase the car park spaces on a 6 year leaseback agreement with an experienced management company that has a proven track record of 100% occupancy with its existing facilities. To add to the investment’s security, your 2-year assured income is deposited in an Escrow Account, with yields expected to grow in excess of 12%.
What’s more, parking spaces require minimal maintenance, reducing maintenance fees for a truly hassle-free investment opportunity.
For those looking to for a low entry option, car park investment is much cheaper than real estate or other alternative investments and offer investors a long-term, stable income stream.
For more information about UK Car Park investment, click here or on the image below.