On May 8, 2019, Conrac Solutions, together with Related Fund Management and Fengate Asset Management, achieved the successful financial close for the new Consolidated Rent-A-Car (ConRAC) facility at Newark Liberty International Airport in the state of New Jersey, USA.
The $500m project, part of the Terminal One Redevelopment Program, includes all design, construction, financing, operations, maintenance and lifecycle management throughout construction and the 35-year lease period.
The 2.7 million square foot ConRAC facility includes 2,925 public parking spaces in addition to the 3,380 rental car spaces. This will support 10 rent-a-car companies, providing space for retail concessions as well as fleet storage, car washing and fueling stations.
A consortium of banks led by MUFG and CIBC is providing the debt financing for the project, with the equity providers contributing the remainder of the funding requirement. The debt is repaid using the Customer Facility Charges applied to rental car transactions.
Operis was pleased to perform a formal model audit on behalf of the lenders and equity sponsors, including a review of the tax treatments in the model.