Asset Management

Financial Appraisal and Sale to National Operator of Automated Car Park in central Edinburgh.

Client

Merrill Lynch

Property Description

New-build 610 space, fully automated car park situated in the centre of Edinburgh’s business district.

Project Summary

  • 50,000 sq. metre, city-centre office development
  • Constrained site necessitating construction of automated car park
  • Financial failure of car park

TownCentreParking’s Role

The developer and operator of the car park went into receivership. Town Centre Parking was brought in by the owner to evaluate the situation and develop a strategy for the rescue of the car park. The following work was undertaken by:

  • Appraise technology
  • Determine capacity of automated system
  • Assess demand potential of location
  • Development of cost/revenue matrix
  • Cost/revenue forecasting
  • Discounted cash flow analysis
  • Assess methods of operation
  • Develop strategy for letting / operation of car park

Conclusion

Our expertise enabled the owner, for the first time since inception, to fully understand the system, with detailed analysis highlighted the technology’s limitations, excessively high operating costs, slowness of the public to adopt the concept and the questionable viability of the project. Based on our findings, it is questionable whether, in the short- to medium-term, automated parking has a future in the UK.


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