Airlink in flyer for NCP car park space
17-02-2002
AIRLINK, the Glasgow-based car park group, has made an audacious
bid for the Scottish operations of National Car Parks, which
has been put up for sale by its US parent Cendant.
John McGlynn, chairman and founder of Airlink, has approached
Cendant in an attempt to persuade it to sell NCP’s Scottish
business separately in a move that would dramatically accelerate
the Glasgow company’s expansion.
Cendant, whose main business is focused on travel services,
put NCP up for sale earlier this year with a price tag of £1bn
and immediately generated interest from major property companies,
attracted by the development potential of its city centre sites.
NCP’s Scottish operations, extending to some 20 sites
across the country, are thought to be worth £10m at most,
reflecting the fact that they are mainly held on leases rather
than owned outright.
But with some 10,000 spaces north of the Border, the acquisition
of NCP would transform Airlink into by far the biggest car park
operator in Scotland. At present Airlink’s operations extend
to 3,400 spaces, all based around Glasgow Airport.
McGlynn confirmed yesterday that he had approached Henry Silverman,
Cendant’s chairman. He said: "I believe there is a
strong case for the Cendant board to sell us NCP’s interests
in Scotland outwith the main sale.
"In Scotland we have a separate legal system and a new
Scottish parliament dealing with many issues affecting the company’s
interest here. As the largest independent Scottish car parking
group, we have the skills and the team to integrate our existing
car parking interests with NCP’s Scottish car parks.
"It makes sense for both parties. In selling the Scottish
interests to us we believe this would add value to the rest of
the portfolio for Cendant."
McGlynn said that if Cendant declined to consider a break-up
of NCP he would approach the other bidders with a view to a joint
venture.
Two of the UK’s largest property companies, Land Securities
and British Land, are said to have made contact with Cendant.
Other potential bidders include Vinci, the French facilities
management group, and the Prudential, through its property investment
arm.
According to McGlynn: "There is no benefit for them to
retain Scotland because their principal concern is the property.
There just isn’t the returns for them, but my head office
team can easily take this on and we’re quite confident
we can fund it without much trouble."
He added: "There is no doubt in my mind that it will be
a property player that buys NCP, but we are trying to persuade
Cendant that NCP is a niche business in Scotland."
Cendant acquired NCP in 1998 for £800m from its founders
Sir Donal Gosling and Ronald Hobson, but has decided to focus
on its services operation, which includes the Avis car rental
business.
Investment banks JP Morgan and Schroder Salomon Smith Barney
are handling the NCP sale, which is expected to be completed
in the next few months.
McGlynn founded Airlink as a hobby while studying accountancy
and law at university, and during his time as a student he had
worked for NCP.
He has since developed Airlink into the largest Scottish-owned
car park operation with additional commercial property and internet-related
businesses.
Airlink’s rapid growth has been achieved through several
acquisitions, the most recent of which was a 10-acre business
park site, valued at £3m, from Tibbet & Britten alongside
Glasgow Airport. McGlynn is planning to develop "a cluster" of
business parks there, each catering for niche industries.
But NCP would represent his boldest move yet for the core car
parking business. "We want to break into the town centre
market and we want to make a big splash," he said. NCP has
520 car parks across the UK and an estimated 6% share of the
off-street parking market.
DOUG MORRISON CITY EDITOR, Scotland
on Sunday
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