LAGP has been selected by Los Angeles World Airports (“LAWA”) to deliver a Consolidated Rent-a-Car Facility (“ConRAC”) at Los Angeles International Airport (“LAX”) under a long-term Public-Private Partnership (“P3”) contract.
LAX is one of the busiest origin and destination airports in the US and the 5th busiest airport by passenger numbers in the world. As a result, there is significant pressure on the existing infrastructure within the vicinity of the airport. LAWA has embarked on a c.$5.5 billion Landside Access Modernization Program, a project which seeks to improve access, reduce traffic congestion, provide more travel time certainty and improve air quality in and around LAX.
In support of this project, LGIM RA has provided long-term debt to facilitate the design, construction, financing, commissioning, operations and maintenance of the LAX ConRAC. Rent-a-car facilities are currently dispersed around LAX, with customers having to travel by mini bus to and from the terminal, adding to the existing congestion and poor air quality around the airport. The LAX ConRAC, which is expected to be operational by mid-2023, will see the construction of a c.5.3 million square foot facility that will consolidate the numerous rent-a-car companies into a single facility. This will be connected to the terminal buildings through rail transportation, seeking to relieve existing congestion from around the vicinity of the airport and improve passenger journey times.
Tom Sumpster, Head of Infrastructure Finance, LGIM Real Assets, said; “We are delighted to be providing $173 million of debt financing to support both LAGP and LAWA in a significant infrastructure upgrade to one of the busiest airports in America. Having made our maiden infrastructure debt investment in the US in 2016, our involvement in this high-profile transaction demonstrates how quickly LGIM RA has built its profile in America. We will continue to be active in this competitive market as we seek to deploy further capital in the US.”
Eleanor Bucks, Managing Director, Direct Investments and Real Assets, Legal & General Retirement: This important infrastructure project [which] will greatly enhance the passenger experience for travellers using Los Angeles Airport (LAX). This transaction further demonstrates our global reach, as well as our commitment to connecting pensions to the real economy. Our investment will improve people's lives and living environment, while securing the pensions of our members.
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