The Newark Liberty International Airport’s $500 million consolidated rent-a-car facility (Conrac) project has been selected as the P3 Deal of the Year for the Americas, by Project Finance International.
Financial close for the project took place May 2019, and construction is now underway. Completion of the public parking area is scheduled for September 2021 with the Conrac opening in April 2023.
The 2.7 million-square-foot Conrac will be constructed on a 19.31-acre site, with 2,925 public parking spaces and 3,380 rent-a-car spaces to support 10 rent-a-car brands. It integrates 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.
Further, the project employs several sustainability initiatives including a solar roof, electric vehicle charging stations, LED efficient lighting, and water reclamation and air quality systems.
PFI is an international resource in global project finance and capital markets information. CS Capital, the finance subsidiary of the CS family of companies, arranged private debt and equity to be repaid solely from a customer facility charge (CFC) collected from rent-a-car customers over the facility’s 35-year lease period.
Unique to any previously developed Conrac, using this model will exempt the rent-a-car industry from coverage of shortfall revenue requirements. It also enables CFC rates to be pre-set for the life of the facility and not subject to adjustment as is typical under an airport-issued bond financing.