Fengate, along with partners Conrac Solutions and Related Fund Management, is proud to announce that we were awarded the P3 Award 2020 for Best Financial Structure 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 project structure includes design, construction, financing, operations, maintenance and lifecycle management throughout construction and the 35-year lease period. Financial close for the project occurred in May 2019, and construction is now underway. Completion of the public parking area is anticipated in 2021, with the ConRAC opening to the public in 2023. The 2.7 million square foot ConRAC will be constructed on a 19.31-acre site at the Airport and include 2,925 public parking spaces and 3,380 rental car spaces. 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 has received high recognition as it has won the Proximo North America PPP Deal of the Year 2019 and the IJGlobal 2019 North America Airports Deal of the Year, and it was also named a finalist for the IJGlobal 2019 North America Project Sponsor of the Year.