EWR Media Room
Conrac Solutions Closes on Financing for Consolidated Rent-A-Car Facility at Newark Liberty International Airport
$500m Transaction Represents Innovative New Model of Private Financing for ConRAC Facilities and was Achieved in Partnership with Related Fund Management and Fengate Asset Management
NEWARK, NJ – May 8, 2019 – Conrac Solutions today announced the innovative, successful private financing of the new Consolidated Rent-A-Car (ConRAC) facility planned for Newark Liberty International Airport (EWR). The recent approval by the Port Authority of New York & New Jersey brings the airport one step closer to realizing a world-class facility that brings all rent-a-car companies at Newark under one roof – at a convenient location – as part of the Terminal One Redevelopment Program.
Financing of the $500 million project was arranged by Conrac Solutions Capital with equity provided and critical strategic implementation by Related Fund Management and Fengate Asset Management. A consortium of banks led by MUFG, CIBC and NBC is providing the debt financing for the project. The deal includes a fixed-price, date-certain and fully-bonded Design Build contract for construction with a joint venture of Austin Commercial, Inc. and VRH Construction Corporation. The project structure includes all design, construction, financing, operations, maintenance and lifecycle management throughout construction and the 35-year lease period. Key advisors to Conrac Solutions on this transaction include Goldman Sachs as financial advisor and Allen & Overy LLP as legal counsel.
The financing structure utilized is both unique and an anticipated model for ConRACs at airports throughout the nation with the financing supplied by equity partners and then repaid solely out of proceeds received from the Customer Facility Charge (“CFC”) applied to rental car transactions.
“Unlike similar projects at other major U.S. airports, that can put airports at risk for availability payments, this financial structure was made possible by CS Capital and its equity partners, Related and Fengate, with sponsorship from the rent-a-car industry, and the foresight of the Port Authority to embrace an innovative approach,” stated Mark Pfeffer, Chairman and CEO of Conrac Solutions.
“The Port Authority has a renewed customer-centric focus that not only improves the travel experience, but provides customers with services and amenities that complement our mission to build world-class facilities,” said Port Authority Chairman Kevin O’Toole. “The ConRAC facility is a perfect complement to the new Terminal One which will serve travelers as a gateway to New Jersey and the region.”
Related Infrastructure, a subsidiary of Related Fund Management, invests in companies that develop, operate and service transportation infrastructure across the country. Andrew Right, Managing Partner of Related Infrastructure said, “Conrac Solutions is a market leader in ConRAC facilities and we are pleased to partner with them and the PANYNJ on a creative private capital solution that will help realize a holistic one-stop solution for rent-a-car operations for the millions of passengers who pass through EWR each year, and is anticipated to become a national model for private-sector investment in these facilities.”
Fengate develops and invests in infrastructure projects across North America that require design, construction, financing, operations, maintenance and lifecycle management throughout a construction and operations period. “We are pleased to be involved in this landmark transaction and applaud the Port Authority of New York & New Jersey for recognizing the merits of partnering with private capital,” said Mac Bell, Director and Head of P3 Investments, Fengate.
Groundbreaking for the project is anticipated in May 2019, with completion of the public parking area in 2021 and the ConRAC in 2023.
Newark Liberty International Airport’s new 2.7 million square foot ConRAC will be constructed on a 16.65-acre site, with 2,925 public parking spaces and 3,380 rental car spaces to support 10 rent-a-car brands. It incorporates 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.
The project employs several sustainability initiatives including a solar roof, electric vehicle charging stations, LED efficient lighting, and water reclamation and air quality systems.
- EWR ConRAC Fact Sheet
- About Conrac Solutions
- About Related Fund Management
- About Fengate Asset Management
Primary Media Contact
Adam Tucker, MWW PR
T: (201) 964-2409
M: (973) 204-5139
William Murray, MWW PR
Alternate Media Contacts
Cassidy Davis, Conrac Solutions
Key Stakeholder Statements and Information
Chairman & CEO
"We are proud to announce this major advance in both rental car and general airport customer service and convenience at Newark Liberty International Airport. All ten EWR rental vendors under one roof and thousands of parking spaces for rental and public use will be conveniently located adjacent to the Terminal One Redevelopment Program at no cost or liability to non-rental customers or tax payers. Thanks goes to all our partners, the EWR rent-a-car companies, and the Port Authority; without them this innovative project would not be possible."
"Undertaking a project of this scale, especially with this unique financing model, requires a lot of moving parts and collaborative efforts, and I would like to thank the Port Authority and recognize our partner organizations for their immense contributions: Related Fund Management, Fengate Asset Management, MUFG, CIBC, Austin Commercial, VRH Construction Corporation, and the EWR rental car brands. The result is a great triumph for airport and rental customers not just at Newark Airport, but also at other airports across the country who may find new development potential in this innovative financing strategy."
Vice President Properties & Facilities
Avis Budget Group
"Today we are one big step closer to realizing a World-Class facility at Newark Liberty International Airport. We are proud to announce the successful financial close on the new Consolidated Rent-A-Car facility, or ConRAC, planned for Newark Airport,” stated Anne D. Morrison Vice President Properties & Facilities at Avis Budget Group, on behalf of the Newark rent-a-car concessionaires. “The project will provide the traveling public easier access to their rental cars – placing all rent-a-car companies under one roof, at a convenient, walkable location, plus thousands of public parking spaces."
"This achievement is realized following a three-year process to integrate a ConRAC with the Terminal One Redevelopment Program at Newark. This process began when the ten rent-a-car concessionaries at Newark Airport came together with the Port Authority to develop a facility that will improve customer convenience, choice and satisfaction as well as reduce traffic congestion at the airport as a result of improved fleet operations for the rental car companies. As an industry, we look forward to delivering a ConRAC that will prepare for future growth at Newark Airport."