Parking auctions draw strong response from investors

Parking asset auctions in Pittsburgh and Indianapolis have drawn a strong response from the industry as initial rounds of bidding each drew double-digit responses from investors.

In Pittsburgh, 11 potential investors responded to the city’s request for qualifications for its parking lots, garages and meters, according to a person familiar with the process. Responses to the request, issued early February, were due 19 March.

In Indianapolis, a request for qualifications for similar city-owned assets yielded 15 responses, which were due 15 March.

A request for qualifications is used to identify potential investors. Respondents in both cities will now be evaluated and select investors will be invited to submit proposals for the parking assets.

Investment bank Morgan Stanley is advising both cities on their auction processes.

And in Hartfort, Connecticut, a request for information from investors interested in bidding for the city's integrated parking system drew 7 responses, according to a person familiar with the process.

William Blair & Company is advising Hartford on the potential transaction.

In related news, New Haven, Connecticut is close to finishng a deal for its parking assets. The city said in a statement that it was finalising an agreement with Gates Group Capital Partners, an Ohio-based private equity firm, to lease its 2,738 parking meters for 25 years in exchange for a $50 million upfront payment.

New Haven Mayor John DeStefano called the deal “a short-term solution that is the bridge to long-term fiscal stability”. The city would have the right to terminate the lease early after year ten, according to the statement.

In April 2009, when the city issued its request for proposals for the deal, it received five responses.