The Ohio State University Leases Parking to Australian/Laz Group
The Ohio State University has leased its 35,000 parking spaces to a group led by Australian Based QIC Global Infrastructure and Laz Parking. The story from the Minneapolis Star Tribune
COLUMBUS, Ohio – Ohio State University trustees have approved a proposal to lease school parking operations for $483 million to an Australian company over a 50-year contract.
Under the plan to lease parking operations to Queensland, Australia-based QIC Global Infrastructure, the university would maintain ownership of its parking garages and spaces, which total more than 35,000 spaces.
The company’s U.S. partner in the deal would be Hartford, Conn.-based LAZ Parking.
Word has it that Laz sweetened the pot at the 11th hour by about 10%. The folks at Laz are smart and know how much this deal is actually worth. Good business does not give away capital. I understand they will hold the current prices for a few years and then, who knows?
How much did Ohio State leave on the table?
UPDATE: From John Shrader at The Ohio State University:
Regarding your blog entry from 6/22 “I understand they will hold the current prices for a few years and then, who knows?”, QIC/LAZ may increase fees by 5.5% annually for the first ten years, and then for the 40 years after they may increase the fees by 4% or inflation, whichever is greater.