Fengate, along with partners Conrac Solutions and Related Fund Management, were awarded the IJGlobal 2019 North America Airports Deal of the Year for the Consolidated Rent-A-Car (ConRAC) facility at Newark Liberty International Airport (EWR ). The approval by the Port Authority of New York & New Jersey (PANYNJ) brings the airport one step closer to realizing a world-class facility that brings all rent-a-car companies at EWR under one roof — at a convenient location — as part of the Terminal One Redevelopment Program.
The facility is being constructed on a 16.65-acre site, with 2,925 public parking spaces and 3,380 rental car spaces to support ten rental brands. Construction started in May 2020 with completion in 2023. The project, valued at $500 million USD, reached financial close in May 2019 and demonstrates a unique and innovative financing structure of private financing that could become a national model.
Customer facility charges are the sole source of revenue for the Project and will be used to fund a portion of the construction costs and to repay the credit facilities. This is the first ConRAC facility subject to demand risk, financed in the bank market, and will likely be the model for the development of future airport ConRACs.
The project was privately financed with Conrac Solutions leasing the facility for 35 years from the PANYNJ. Equity came from Fengate and Related Fund Management. The debt financing package was led by MUFG, CIBC and NBC. The deal includes a fixed-price, design, design, construction, financing, operations, maintenance and lifecycle management with a joint venture of Austin Commercial and VRH Construction. The EWR ConRAC facility was also named a finalist for the IJGlobal 2019 North America Project Sponsor of the Year. To learn more about the IJGlobal 2019 awards, download the full magazine here.