- PARKD and Axiom have signed a binding Heads of Agreement
- Agreement is for a term of 18 months
- Axiom welcomed the unique expertise of PARKD
Axiom Properties (ASX: AXI) and car park construction company PARKD (ASX: PKD) have signed a binding Heads of Agreement for a term of 18 months.
PARKD said the agreement is “for the purpose of seeking opportunities within Australia for developing and construction car parks in the private and public sectors.”
“This partnership presents an exciting opportunity for PARKD to provide an alternate funding solution to traditional capital expenditure,” said PARKD Chairman Bronte Howson.
The car park construction company has a unique method of construction that Axiom saw promise in:
“We are impressed with PARKD’s IP and technical expertise in the design and construction of multi-level car parks, and we see their solutions as a strategic advantage in securing property deals in key target sectors.”
Ben Laurance, Axiom managing director
Car parking is perhaps the ugly duckling of property, and its value is often overlooked.
The Property Tribune reported earlier this year that Care Park was divesting about 10% of its portfolio worth $25 million. Comprising eight Victorian assets and another in New Zealand, the parking lots are located in high profile areas including South Yarra, Abbotsford, St Kilda Road, Toorak Village and Flinders Street.
Waning office worker numbers means fewer dollars in the pockets of car park operators, in commercial property markets across Sydney, Brisbane and Melbourne. Parkable estimated that up to $761.7 million in annual revenue was lost due to unleased and vacant car parks.
Based on 57% of leased staff parks sitting vacant, this breaks down to:
- Sydney – $371.5 million;
- Melbourne – $262.4 million;
- Brisbane – $127.7 million.
Tenants taking up fewer parker spaces also means building owners are looking at new ways to make those spaces available on a more flexible basis, some welcoming occupancies of up to 80% under new models of leasing compared to none at all under the ‘traditional’ leasing model.