The Newark Liberty International Airport’s $500 million consolidated rent-a-car facility (ConRAC) project has been selected as the P3 Deal of the Year for the Americas, by Project Finance International. Conrac Solutions Capital leads the development team that closed Newark, the first privately financed ConRAC facility in the U.S. Financing closed in the spring of 2019 and included equity participation by Related Fund Management and Fengate Asset Management.
PFI is an international resource in global project finance and capital markets information. The annual PFI Yearbook awards are the industry’s most prestigious annual awards presented in London in February of each year.
“Credit for this project is rightfully owed to the rent-a-car industry in making this project a reality. Further, hats off to Port Authority of New York and New Jersey for forward thinking to utilize this delivery method. It will be a world-class facility, but without any burden to local tax payers,” said Chairman and CEO of Conrac Solutions, Mark Pfeffer.
CS’ successful utilization of this model allowed the PANYNJ to keep financing completely off-balance sheet, freeing up credit capacity for allocation elsewhere. Further, the PANYNJ maintained control of the asset development terms and will remain long-term owners of the facility, fully maintained with lifecycle cost guarantees from CS Operators.
Unique to any previously developed ConRAC, using this model will exempt the rent-a-car industry from coverage of shortfall revenue requirements. It also enables CFC rates to be pre-set for the life of the facility and not subject to adjustment as is typical under an airport-issued bond financing.
The 2.7 million square foot ConRAC will be constructed on a 19.31 -acre site, with 2,925 public parking spaces and 3,380 rent-a-car spaces to support 10 rent-a-car brands. It integrates retail operations with customer wayfinding and traffic circulation, provides vehicle fleet storage and enhanced security, and includes shared components such as 15 car washes and 54 fueling positions along with vacuum systems, waste management and service bays.
Further, the project employs several sustainability initiatives including a solar roof, electric vehicle charging stations, LED efficient lighting, and water reclamation and air quality systems.