Conrac Solutions is set to secure private financing for the new Consolidated Rent-A-Car (ConRAC) facility planned for Newark Liberty International Airport (EWR) in the US.
The move comes after the New York & New Jersey Port Authority (PANYNJ) approved plans for the construction of ConRAC next to Terminal One at the airport in July last year.
The new 2.7 million square foot ConRAC will bring all rent-a-car companies under one roof as part of Newark Liberty Airport’s Terminal One Redevelopment Program.
It will be constructed on a 16.65-acre site and will feature 2,925 public parking spaces and 3,380 rental car spaces. The facility also incorporates retail operations with customer wayfinding and traffic circulation.
The ConRAC also offers 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.
Conrac Solutions Capital provided arranged of the project with equity provided and critical strategic implementation by Related Fund Management and Fengate Asset Management.
Conrac Solutions chairman and CEO Mark Pfeffer said: “Unlike similar projects at other major US airports, that can put airports at risk for availability payments, this financial structure was made possible by CS Capital and its equity partners, Related and Fengate, with sponsorship from the rent-a-car industry, and the foresight of the Port Authority to embrace an innovative approach.”
Debt financing for the $500m project will be provided by a consortium of banks led by MUFG, CIBC, and NBC.
The latest deal includes a design-build contract for construction with a joint venture of Austin Commercial and VRH Construction.
The structure of the project will include all design, construction, financing, operations, maintenance and lifecycle management throughout construction and the lease period for 35 years.
Groundbreaking for the project is expected to take place this month, with completion of the public parking area in 2021 and the ConRAC in 2023.