Europe’s car park infrastructure is undergoing significant growth: in the past year, four of the largest operators have been put up for sale, while M&A activities are commanding high prices. Although the recent flurry of deals appears promising, S&P Global Ratings argues that the future could look far less favourable for car park assets.
Notably, the automotive industry’s technological breakthroughs, the rise of ride-hailing apps and car sharing services pose material threats to car ownership. This may significantly alter companies’ ability to forecast future revenues and maintain successful relationships with municipalities and other stakeholders. To accommodate, S&P expects car park operators to adapt their business models in the future.
The report, written by S&P Global Ratings’ Stefania Belisario, was covered by City AM.