AMP Capital and Northleaf Capital Partners (Northleaf) have reached financial close on a transaction to acquire Chicago Downtown Public Parking System (Millennium Garages), from LMG2, LLC through a newly-established joint venture (MPG LLC).

In February, we informed that the concessionaire of the Chicago downtown public parking system run by LMG2, had announced that it had reached an agreement to sell the concession assets to the joint venture comprised of Northleaf Capital Partners and AMP Capital.

The US$370 million acquisition gives the AMP Capital/Northleaf joint venture exclusive concessionaire rights and responsibilities to operate, manage, maintain and collect parking fees and other revenues in connection with the Millennium Garages system.

Millennium Garages 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.

AMP Capital Head of Americas Infrastructure Dylan Foo said:

“Millennium Garages is the first North American asset for AMP Capital’s global infrastructure platform and fits perfectly with the platform’s mandate to invest in sectors offering the best relative value such as transport. Millennium Garages offers exciting growth potential for our investors due to the strength of Chicago’s economic and demographic factors, stable and predictable cash flows and strong protections through the concession agreement.”

Northleaf Managing Director and Co-head of Infrastructure George Zakem said:

“Direct investments in conservatively-positioned infrastructure assets such as Millennium Garages are consistent with Northleaf’s investment strategy and offer significant potential for stable cash flows and attractive long-term returns for our investors.”