AMP Capital and Northleaf close deal to acquire Chicago’s Millennium Garages for US$370 million

By AMP Capital media team

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

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.”

MPG LLC has also announced Chicago-based SP Plus Corporation will take over as operator of the garages in September 2016.

Macquarie acted as financial advisor to AMP Capital and Northleaf with Allen & Overy LLP and Barnes and Thornburg LLC serving as legal advisors. Evercore acted as the exclusive financial advisor to LMG2, LLC with Kirkland & Ellis LLP and Fox, Swibel, Levin & Carroll LLP serving as legal advisors.

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Important notes

This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.

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