Frequently Asked Questions

 

Before Purchasing

  • How much does a car park space cost?

The cost of a car park space can vary depending on location and time. At present, a single space at Glasgow Airport costs £25,000 on a 175-year lease. You are free to buy a single car park space or multiple spaces depending on your investment objectives and the availability of spaces.

  • Is this type of investment regulated by the Financial Control Authority?

Every airport parking investment intends to be commercial property transaction as you will be purchasing a 175-year long lease over your individual parking space. For this reason, this is a commercial property transaction and falls outside the remit of the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS).

Companies that offer commercial property investments, such as airport car park space investments, are not generally authorised or regulated by the FCA. Since we do not provide advice or financial investment products, we cannot be subject to FCA regulation. However, we do seek to operate per the best practice and guidelines promoted by the FCA and the FOS.

  • What risks should I be aware of when making this investment?

As with any investments, the value of your car parking space and its rental income can go down as well as up, and all investors are encouraged to take independent professional advice before deciding whether buying an airport car parking space is right for them.

Projected returns are based on predicted future occupancy levels and rents. If actual rent and occupancy levels fall below these projections, revenues will be distributed to investors on a pro-rata basis by the management company.

  • Can I undertake due diligence and get an independent valuation?

We recommend that all investors take independent professional financial advice before purchasing car park spaces. We also strongly recommend that you contact us to arrange a site visit before deciding whether buying an airport car parking space is right for you, as this will give us an opportunity to discuss any queries you may have. This will also give us the chance to demonstrate how the investment will work.

A qualified commercial property surveyor and member of the Royal Institute of Chartered Surveyors instructed by Aston Darby has carried out an independent valuation of the car park. This valuation includes a market valuation for each space within the car park, a copy of which will be shared with you before you proceed to purchase. All potential investors are welcome to commission an independent surveying firm to conduct an additional survey.

After Purchasing

  • What happens to my investment funds after payment?

The funds will be paid to Aston Darby Group Ltd. In return, you will receive the lease of the space. You grant a two-year lease to the company giving the rental guarantee, and it will receive all of the profits generated by the space. However, at the end of the two-year period, you will become entitled to share in all of the profits.

Following the granting of the lease, there will be no Stamp Duty Land Tax payable unless investment exceeds £150,000. However, the lease will need to be registered with the Registers of Scotland (ROS). We will attend to this formality on your behalf and send you proof of your ownership. Timescales for registration with ROS vary between three and twelve months.

  • What documentation will I receive to provide proof of purchase?

You will receive a title deed registered with the ROS Land Registry. This document will act as your official proof of purchase which confirms ownership, as well as any rights, obligations, and mortgages relating to the property.

Formal confirmation of ownership is available on request. We will provide you with a copy of the legal document issued by the ROS that confirms the purchase. You can also check the ownership of each car park space by accessing the Land Registry on the ROS site.

  • Who deals with enquiries after I have purchased a space?

We encourage all our clients to contact us at any time with any questions or concerns they may have. Our client liaison support team will be happy to answer any queries by email, and we will also be pleased to arrange a face to face meeting at our offices in Manchester or at a location of your choice.

  • Are there any extra fees to pay after the purchase has been completed?

Aston Darby does not charge you any fees, and after you’ve completed your purchase, there won’t be any charges to pay.

A qualified commercial property surveyor and member of the Royal Institute of Chartered Surveyors instructed by Aston Darby has carried out an independent valuation of the car park. This valuation includes a market valuation for each space within the car park, a copy of which will be shared with you before you proceed to purchase. All potential investors are welcome to commission an independent surveying firm to conduct an additional survey.

Payments and Costs

  • How are the first two years’ returns guaranteed?

Aston Darby protects the first two years’ returns by way of a sublease to the management company, thus making it possible to offer investors a guarantee for two years.

  • How will the dividends from the car park be distributed?

There will be a payment system in place to collect the car parking fees and distribute profits to the members. Furthermore, there will be a sinking fund into which there will be regular contributions out of car parking fees to meet the costs of replacing significant items and resurfacing the car park at the point in time in the future when it needs to be resurfaced.

  • What are the projected management costs for Glasgow Airport Car Park?

The projected management costs are 15% of the income generated by the car parking fees. These costs include state-of-the-art security, upkeep and running of the sophisticated online pre-booking system, maintenance, insurance, staffing, and the costs of operating the shuttle bus.

Since the management fee is based on a percentage of revenue produced by your space, this fee structure ensures that the management company remains fully aligned with your needs as an investor and owner of

the space, because it is thus incentivised to maximise rental income for every car parking space to the benefit of both parties.

  • What returns can I expect from my investment?

For the first two years, there is a guaranteed return of 11% each year from the rent paid under the initial two-year lease. From the third year onwards, profits are no longer fixed but will vary depending on occupancy levels and average prices paid by customers to park.

Occupancy rates will be primarily driven by the anticipated growth in passenger numbers, complemented by increased marketing spend and improvements to the car parks carried out by management companies to the benefit of all investors. As a result, we expect annual income to be 11% for the third and fourth year and 12% for the next two years.

It is important to note that the returns described above are the net amounts paid to you after the deduction of the running costs incurred by your management company.

  • How long do I have to wait before selling the space?

You can sell your space at any time following receipt of your Title Deed, but you should be aware that, while the resale market is maturing, there can be no guarantee of success. Should you wish, Aston Darby will be happy to assist in selling your car parking space and, subject to a resale fee, we will market the space to potential owner-occupiers, business users and other interested investors.

Aston Darby also offers a buy-back option after ten years for 125% of your initial investment. This buy-back price will not include any dividends paid to you throughout your ownership of the space(s).

Car Park Management

  • Who will run the car parks on a day-to-day basis?

Management companies are delegated by Aston Darby to run each car park. The contracts with the management companies run for an initial two-year period and after that will operate a rolling contract basis with three months notice. The company will directly employ the staff required to operate the car park and have in place all operational contracts.

  • What control will I have over my investment after purchasing?

Once a purchase is complete, you will become a shareholder in the management company. Each shareholder will be entitled to appoint a director of the company, and you may nominate yourself as a director. As evidence of your shareholding, you will receive a share certificate.

  • When is each return paid?

The first return is paid within 14 days of investing, and subsequent payments will be made yearly on the same date.

Investment Structure

  • How is each investment structured?

A special-purpose vehicle (SPV) will be established and held in a limited liability partnership (LLP) company, ensuring that your investment monies are put towards your investment property.

The individual investors or someone appointed by the investor will become de facto directors of the management company, enabling each investor to have a say in how the car park is managed in the future.

There will be a contract in respect of your investment. The agreement will be between yourself and the SPV whereby the terms of your investment will be set out.

  • Is there a shareholder’s agreement?

In most cases, there will not be a shareholder’s agreement as the contract will outline all necessary details, but in certain situations, a shareholder’s agreement will be put in place and included as part of the pack with the documents. For more information on shareholders agreements, contact your agent or salesperson.

  • Will there be board meetings of the LLP and the SPV?

There are monthly board meetings of the LLP and the SPV. As a director, you will be entitled and invited to attend the meetings. The meeting will be conducted online using a webinar software package.

Before any board meeting, you will receive a board pack which will contain a report on the recent progress of the company along with a statement from the company secretary detailing the contractual commitments of the company together with draft management accounts.

Directors may submit any questions that they have in advance and during the meeting ask questions and contribute as they see fit.

  • Will a company secretary be appointed?

Each SPV and LLP will have a company secretary whose duty is to ensure that there is compliance of the company with Companies House and HMRC. In addition to this, the company secretary shall provide management accounts before each board meeting.

  • Are there any fees payable to the SPV?

Every SPV will enter into a contract whereby a commission will be payable in respect of all investment capital introduced. Generally, there will be a commission payable immediately upon the issue of the shares in the SPV. The investor will not pay any commissions, and the whole of their investment will be in the SPV with shares being issued equal to their investment.

  • Who will be the directors to the SPV?

The directors of the company will be the individual investors or someone appointed by the investor to be a director on their behalf