Australia’s largest car parking businesses Secure Parking is selling a majority interest in its operations to Japan’s largest car park operator Park24 for $227 million.
Secure has about 38 per cent market share in Australia while the second largest player Wilson Parking, backed by billionaire Hong Kong-based Kwok family, has about 33 per cent.
Following this deal with Secure, The Tokyo Stock Exchange-listed Park24 will have 18,052 parking sites and 964,711 spaces across eight nations, and will become the largest parking business operator worldwide.
“The company will aim not only faster business development in the existing markets, but also entrance into new geographical areas by collaborating in development and in operation know-hows,” Park 24 said in a statement.
Brothers Garth and Brett Mathews, who founded the Secure Parking business in 1979, will retain a minority interest in the operation which extends across Australia, New Zealand, United Kingdom, Singapore and Malaysia.
“This agreement secures our market leadership in Australia through a timely and smooth transition to a new international partnership,” Garth Mathews said.
“At the same time Secure Parking’s brand name, senior management team and market leading technology will remain firmly in place.”
Some of the key parking sites in Australia include the Hilton Hotel and King Street Wharf in Sydney and the QV Shopping Centre, 300 Flinders Street, and 392 Bourke Street in Melbourne.
Earlier this week ASX-listed group Ariadne Australia announced that it had also entered into a conditional agreement with Park24 to sell its 50 per cent interest in Secure Parking for about $75 million.
That separate deal represented a significant $64 million premium to Ariadne’s June book value of $11 million.
Ariadne held the investment in Secure Parking since 2004 when it merged its Australian car parking operations with those of Secure.
The deals with Japan’s largest car parking operator is expected to complete in early 2017.
Before the deals Park24 operated 17,171 parking sites, 645,849 spaces, 16,252 vehicles in the car sharing service, and 26,691 vehicles in the rent-a-car service in Japan as of the end of October this year.
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