Park & Fly Carparking Space
- Thread starter Scott No Mates
- Start date
Sorry Spades, Jake beat me to it. (Thx Jake).
I received a bulk email from Domain this afternoon and flagged it for anyone looking for some cashflow + on a small budget (might sit nicely in a smsf).
Don't know what their occupancy rate is or how the lease conditions stack up.
I don't have a crystal ball as to what growth would be over the lease term nor what the demand for on-selling would be at the end of the day.
it's going to take a long time to get a new airport built and operational.
Absolutely.
But it's possible that it could be completed within 20 years. At that stage, the asset you've bought for 6.5% return will be worth very little.
That assumes traffic at Sydney Airport drops as a result of the new airport.
If the traffic increases overall and the overflow goes to the new airport, Sydney Airport may still have as many or more users.
It also assumes that we will be relying upon planes for intra/interstate & international travel not personalised jet packs, people will still be relying on cars to get to the airport/govt hasn't stumped up the subsidy to cover the platform access fee from Macquarie & made train fairs cheaper, planes haven't been banned because of global warming, price of airfares hasn't gone through the roof due to issues with fuel supply etc.
Too many variables.
Too many variables.
Adding to the issue of good ol' fashioned "supply and demand" is how easy it would be the build more next door.
My general view is car parks represent poor return and high risk. Sure they are cheap but as we all know, cheap doesn't equal good!
Building a high rise car park in the CBD would be much harder/more expensive and your demand is arguably going to be more consistent. Even then, I still wouldn't buy one.
These look like ever poorer returns with a higher risk of a developer building another one right next door when demand increases.
In addition to the variables listed above, what about things like...
Taxi licenses/fees and the cost of simply taking a cab rather than driving.
What Macquarie Airport charge for parking in the future as this will also dictate your return and sell price.
Public transport costs! What if the Govt decided to make an election promise to heavily subsidise train travel. Don't laugh, the Victorian govt did exactly this several years ago and abolished Zone 3 fares effectively doubling the number of passengers using P.T overnight.
Cheap, cheap, cheap but not very good, good, good.
B.D
My general view is car parks represent poor return and high risk. Sure they are cheap but as we all know, cheap doesn't equal good!
Building a high rise car park in the CBD would be much harder/more expensive and your demand is arguably going to be more consistent. Even then, I still wouldn't buy one.
These look like ever poorer returns with a higher risk of a developer building another one right next door when demand increases.
In addition to the variables listed above, what about things like...
Taxi licenses/fees and the cost of simply taking a cab rather than driving.
What Macquarie Airport charge for parking in the future as this will also dictate your return and sell price.
Public transport costs! What if the Govt decided to make an election promise to heavily subsidise train travel. Don't laugh, the Victorian govt did exactly this several years ago and abolished Zone 3 fares effectively doubling the number of passengers using P.T overnight.
Cheap, cheap, cheap but not very good, good, good.
B.D
Which is the period at which Park&fly's lease finishes, and you would have to negotiate the terms of a new lease...
Doesn't stack up for me.
The car spaces seem quite expensive. Just because there are options with increases doesn't men that the Lessee will exercise the options. There's no reason that the lessee cant renegotiate new lease terms at the expiry of the current lease term at a lower rate.
Security car spaces in the middle of North Sydney are valued at ~$60k and are leased at ~$5000k pa ++...
The car spaces seem quite expensive. Just because there are options with increases doesn't men that the Lessee will exercise the options. There's no reason that the lessee cant renegotiate new lease terms at the expiry of the current lease term at a lower rate.
Security car spaces in the middle of North Sydney are valued at ~$60k and are leased at ~$5000k pa ++...
Sounds attractive but...
I got sent the flyer by PNF and got excited after already having a serviced apartment with long term lease that have served me well.
However I spoke to my financial planner today and he said the PNF is owned by Macquarie Bank, can anyone confirm this? Who owns stratacarparks?
If this is true, then I won't be touching this with a 10ft barge pole. Plus PNF is eventually going to expand next door and who's to say that that additional excess supply won't drop the rent.
I'm sceptical.
I got sent the flyer by PNF and got excited after already having a serviced apartment with long term lease that have served me well.
However I spoke to my financial planner today and he said the PNF is owned by Macquarie Bank, can anyone confirm this? Who owns stratacarparks?
If this is true, then I won't be touching this with a 10ft barge pole. Plus PNF is eventually going to expand next door and who's to say that that additional excess supply won't drop the rent.
I'm sceptical.
The site at 1008 botany rd mascot is owned by
G.o. Car park Nominees p/l
Gladiator Meif P/l
Cavalane holdings p/l
A quick $9 ASIC search should reveal at least a couple of layers of who controls g.o car park nominees & gladiator Meif...james packer controls cavalane holdings.
Is there another address for pnf? This one doesn't seem like a strata titled property
G.o. Car park Nominees p/l
Gladiator Meif P/l
Cavalane holdings p/l
A quick $9 ASIC search should reveal at least a couple of layers of who controls g.o car park nominees & gladiator Meif...james packer controls cavalane holdings.
Is there another address for pnf? This one doesn't seem like a strata titled property
Thanks Jake for the information. Car parks were extremely popular with our clients years ago, may have our business affiliate look into this offering a little more and perform some analysis. Initial thoughts are that they are a little expensive, however, we will dig deeper.
Here is part of the article published for AFR subscriber
Investors queue for airport parking spaces
PUBLISHED: 0 HOUR 6 MINUTE AGO | UPDATE: 0 HOUR 6 MINUTE AGO
Property sales will start at the 15-square-metre level on Saturday when investors flock to a Sydney Airport car park to slap down a $2000 deposit for a parking space.
Cramer Property has received more than 2000 expressions of interest, including from overseas, for the 602 car spaces to be sold in the lot managed by Park and Fly, to which they will be leased for about 6.5 per cent a year. Single spaces are being offered for $57,500 and the 450 double spaces for $104,500 each.
Investors queue for airport parking spaces
PUBLISHED: 0 HOUR 6 MINUTE AGO | UPDATE: 0 HOUR 6 MINUTE AGO
Property sales will start at the 15-square-metre level on Saturday when investors flock to a Sydney Airport car park to slap down a $2000 deposit for a parking space.
Cramer Property has received more than 2000 expressions of interest, including from overseas, for the 602 car spaces to be sold in the lot managed by Park and Fly, to which they will be leased for about 6.5 per cent a year. Single spaces are being offered for $57,500 and the 450 double spaces for $104,500 each.
