Why Airport Parking is worthy of a place in your Portfolio
Investment opportunities are everywhere and with that brings the challenge of picking the winners over the losers. Many of us will have invested in the property sector and have no doubt experienced the highs and the unwelcome lows that is part of the process.
Have you considered the opportunities within commercial property? This is an industry that is showing consistently high returns and showing no signs of slowing down. An area of key interest for investment firm FJP Investment Ltd is car parks at major UK airports.
“When searching for Income Generating Assets it is always sensible to consider the entry price vs demand vs supply. In the case of our car park investment at Glasgow, we have investors coming in at £20,000 for prime parking spaces that were 92% full in 2014. Additionally, the airport has requested a total of 17,900 spaces by 2020, which tells us we are already positioned to take full advantage of future demands,” says Tom Roberts of FJP Investment Ltd.
4,500 parking spaces at the Glasgow airport have been made available to investors and they are almost sold out, being 6 car parks in total. Car park 6 is now being made available for investors, who in turn sub-lease the car parks back to the management team, who are excellent at the management side of car parks as this is their speciality. Parking is their business and of the 6 car parks, some have been car parks for the airport for more than 15 years and therefore have a superb track record and a fantastic, loyal customer base.
The six year lease gives the client six years of guaranteed income at an average of 10% per year. For most investors, a 10% yield is certainly worthy of including within any portfolio.
At the end of the day, income is income, be it from a buy-to-let in Weston-super-Mare or a car parking space at Glasgow International Airport.
The future is bright for investors of airport parking because airports like Glasgow are only ever increasing their range of destinations in order to keep up with passenger needs; with more demand for aviation travel comes more demand for airport parking.
Investors purchase individual ‘car parking spaces’, which are then leased back to an experienced car park management company Airlink. They then manage the ‘parking space’ on the investor’s behalf.
“We are coming to the end of our sales process at Glasgow Airport and will soon be waiting for further car park investments at Birmingham, Gatwick, Luton and Manchester in the future More details on these sites will be released as soon as we are able to confirm with the developer,” adds Tom Roberts of FJP Investment Ltd.