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Why property investors are parking their cash at Glasgow Airport

by 29. May 2015 11:34

Shrewd property investors on the lookout for lucrative property investments in the United Kingdom are increasingly turning their eye to the commercial property asset class. With UK interest rates held at 0.5% for another month by the Bank of England and stocks and shares considered too risky by most and certainly not giving good returns, it is little wonder this sector is seeing an increasing number of speculators.

Airports are big business: Glasgow Airport accounted for a record number of travellers in 2014, with on average 22,000 passengers per day travelling through the airport. When using the airport, a good proportion of those users will require car parking, and this is why clients of FJP Investment have been investing in Glasgow Airport over the last 12 months.

Occupancy Levels

With a total of six car parks at Glasgow Airport holding 4,500 existing, working parking spaces, we were able to achieve a 92% occupancy rate in 2014. The car parks have been used as parking facilities at the airport for the last 15 years and this has meant that our investors are able to benefit from an already existing customer base.

Glasgow International Airport recently announced the need to create a total of 17,900 parking spaces by year 2020. This car park investment is perfectly positioned to provide income from customers using the car parks and capital appreciation on the car parks themselves.

FJP Investment Ltd is also sourcing car park investments at other UK airports with sites due to launch at Birmingham, Gatwick, Luton and Manchester in the near future.

Investor Returns

The car park investment at Glasgow International Airport is owned and operated by Park First Ltd, investors are purchasing parking spaces from Park First and then sub-leasing them back in return for a fixed income over a six year period whilst still being the title deed holder. On average, investors will earn 10% per year with rental returns paid yearly, in advance.

Additional capital gains can be had from the asset itself. When purchasing at £20,000 there is the opportunity to resell for around £25,000 minimum using one of the many exit options.

 

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Yuri Brixenmortar

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