Central Parking Announces the Sale of Fourteen Owned Parking Properties
March 15 2012 - 4:13PM
Business Wire
Central Parking System, Inc. (“Central”) announced today that it
successfully completed the sale of fourteen owned properties in its
wholly owned property subsidiary “PropCo” properties. In the second
of two coordinated transactions, Central completed the sale of five
parking garages and nine surface lots located in ten cities
throughout the U.S. to affiliates of CoveredBridge Ventures. As
part of the transaction, Central will continue to long-term lease
the parking properties.
The proceeds of the first of the coordinated transactions
completed in December 2011 were utilized to retire all of PropCo’s
outstanding debt. The proceeds of this second transaction will be
used to pay taxes associated with the property sales and for
general corporate purposes.
“With the completion of this transaction, Central has
successfully executed its strategic plan to focus on the core lease
and management business,” said James Marcum, Chief Executive
Officer and President, adding, “This includes the expansion of our
subsidiaries Focus Point Parking, which provides integrated
centralized remote management services and USA Parking, which is
the industry leader in hospitality valet parking.”
According to Cindy Baier, Central’s Chief Financial and
Administrative Officer, “Completion of the sale and leaseback of
the parking facilities provides a significant improvement to
Central’s working capital and liquidity while continuing to build
on our role as an industry leading parking operator.”
Rick West, Executive Vice President, based in New York, who
managed the sale, said, “Parking property ownership continues to be
a desirable asset class for private and institutional real estate
investors. We are pleased to have forged a long-term relationship
with CoveredBridge through the leaseback of the parking
properties.”
About Central Parking
Central is a leader in parking management serving large and
small property owners, infrastructure funds and governmental
clients to maximize service, revenue and value creation. With
operations in 39 States and Puerto Rico, the Company’s locations
include: mixed-use developments, office buildings, hotels, stadiums
and arenas, airports, hospitals, universities, municipalities and
toll roads. In addition, through its USA Parking subsidiary,
Central is one of the premier valet operators in the nation with
more four and five diamond luxury properties including hotels
and resorts than any other valet competitor. Central’s over 1
million parking spaces operate under the brands Central Parking
System, CPS Parking, New South Parking and USA Parking. For more
information, go to www.parking.com.
About CoveredBridge Ventures
CoveredBridge Ventures is a real estate investment and advisory
firm founded by P.J. Yeatman. CoveredBridge specializes in
providing tailored real estate solutions to private equity funds
and their portfolio companies. For more information, please go to
www.coveredbridgeventures.com.