Financial close for Consolidated Rent-A-Car (ConRAC) facility at Newark Liberty Airport PPP Project

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Conrac Solutions 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 US$ 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.

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.

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