Sale of Millennium Garages Concessions Completed
LMG2, LLC, the concessionaire of the Chicago Downtown Public Parking System, or Millennium Garages, announced today closing on the sale of the concession assets to Millennium Parking Garages LLC (“MPG”), a joint venture comprised of Northleaf Capital Partners (“Northleaf”) and AMP Capital for $370 million. The transaction gives MPG exclusive concessionaire rights and responsibilities to operate, manage, maintain and collect parking fees and other revenues in connection with the Millennium Garages system. MPG also announced today Chicago-based SP+ Corporation will take over as operator of the garages in September 2016.
“Millennium Garages represents an excellent investment opportunity for our investors. The asset offers exciting growth potential due to the strength of Chicago’s economic and demographic factors. There is also potential for additional benefits for the City of Chicago and we are excited to help realize that potential in the coming years. We appreciate the City’s review and approval of the transaction,” said Dylan Foo, AMP Capital head of Americas Infrastructure.
Millennium Garages is the largest underground parking system in the United States. It includes 9,176 parking spaces in four underground parking garages underneath Millennium, Grant and Maggie Daley Parks. The facility is approximately 3.8 million square feet and extends from Van Buren Street to Randolph Street and in parts from Michigan Avenue to Lake Shore Drive.
“Direct investments in conservatively-positioned infrastructure assets such as Millennium Garages are a key focus of Northleaf’s investment strategy and offer significant potential for stable cash flows and attractive long-term returns for our investors,” said George Zakem, Managing Director and co-head of Northleaf’s infrastructure team. “We are very pleased to be able to make a meaningful long-term investment in a strategic asset for the City of Chicago and we look forward to working with the City and SP+ to provide an improved user experience to all our customers.”