Central Parking announces the sale of fourteen owned parking properties
Central Parking System, Inc. (Central) announced 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 PropCos 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, Centrals Chief Financial and Administrative Officer, Completion of the sale and leaseback of the parking facilities provides a significant improvement to Centrals 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.
The proceeds of the first of the coordinated transactions completed in December 2011 were utilized to retire all of PropCos 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, Centrals Chief Financial and Administrative Officer, Completion of the sale and leaseback of the parking facilities provides a significant improvement to Centrals 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 Companys 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. Centrals over 1 million parking spaces operate under the brands Central Parking System, CPS Parking, New South Parking and USA Parking.
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