Skypark Málaga is a parking facility to be built at Málaga Airport, Costa del Sol in Spain. According to the plan, the parking facility will be operated as valet parking. There will be 1,600 units spread over 4 floors. In addition, there will be 50 VIP units on the ground floor, which will have charging stations for electric and hybrid vehicles. The facilities will be fully covered and monitored with 24-hour security.
Absolutely solid investment opportunity in prime parking spaces located right next to Málaga Airport. The project is incredibly attractive as this will be the first and only parking option with direct access to the northern entrance to the airport.
Join a growth market that is currently estimated to have a total size of 18.2 billion dollars.
Absolutely solid investment opportunity in prime parking spaces located right next to Málaga Airport. The project is incredibly attractive as this will be the first and only parking option with direct access to the northern entrance to the airport.
Join a growth market that is currently estimated to have a total size of 18.2 billion dollars.
MÁLAGA AIRPORT
Málaga Airport is the busiest international airport in Spain, handling approximately 85% of the international traffic in Andalusia. It is the fourth largest airport in Spain. The airport is incredibly popular due to its attractive location on the Costa del Sol coast and the nearest airport to resorts in and around Málaga.
The Spanish government has announced an investment in the infrastructure of Málaga Airport of 88.3 million euros for the period 2022-2026 to further increase capacity and to enable the airport to handle more than 30 million passengers annually. This expansion and improvement will only benefit us and have a tremendous effect on the parking spaces in and around the airport.
Málaga Airport ends the year with over 22 million registered passengers throughout 2023, an increase of 4.7%. In comparison, we see a decrease of 5.3% and 2.5% in Barcelona and Madrid airports, respectively. This shows a strong tendency for tourists to choose Costa del Sol over the larger cities with increasing interest in Málaga. Based on this, the Spanish government is forced to accelerate the expansion of their investment in Málaga Airport and expects to start this at the end of 2024.
The Spanish government has announced an investment in the infrastructure of Málaga Airport of 88.3 million euros for the period 2022-2026 to further increase capacity and to enable the airport to handle more than 30 million passengers annually. This expansion and improvement will only benefit us and have a tremendous effect on the parking spaces in and around the airport.
Málaga Airport ends the year with over 22 million registered passengers throughout 2023, an increase of 4.7%. In comparison, we see a decrease of 5.3% and 2.5% in Barcelona and Madrid airports, respectively. This shows a strong tendency for tourists to choose Costa del Sol over the larger cities with increasing interest in Málaga. Based on this, the Spanish government is forced to accelerate the expansion of their investment in Málaga Airport and expects to start this at the end of 2024.
FIRST CLASS LOCATION
The project is incredibly attractive as it will be the first and only facility with parking options with direct access to the northern entrance to the airport.
The possibility of long-term parking is present in almost all airports of a certain size. This is because long-term parking at airports is a proven concept and a very profitable business model.
The threshold for when demand is large enough to make it profitable to establish a long-term parking facility varies from place to place, but typically breaks at an annual passenger number of over 2.5 million travelers. The type of passengers naturally plays a role, but with a volume of over 2.5 million travelers, the facility is guaranteed a certain amount of traffic, which provides a healthy basis for renting out the facility.
The number of passengers at Málaga Airport was approximately 19.85 million travelers in 2019, which means that it handles over 5 times as many travelers as, for example, Billund Airport. In 2023, the airport set a record with over 22 million travelers, and this is still increasing. In the area around Málaga Airport, there are currently very limited options for long-term parking, which is partly due to the fact that the airport now has the necessary capacity and sufficient passenger numbers to make it worthwhile to create a supply – i.e., a parking facility that meets the demand. Since there is a lack of parking spaces in and around Málaga Airport, Skypark Málaga will meet the need and become the first and only parking facility with direct access to the northern entrance to the airport.
The possibility of long-term parking is present in almost all airports of a certain size. This is because long-term parking at airports is a proven concept and a very profitable business model.
The threshold for when demand is large enough to make it profitable to establish a long-term parking facility varies from place to place, but typically breaks at an annual passenger number of over 2.5 million travelers. The type of passengers naturally plays a role, but with a volume of over 2.5 million travelers, the facility is guaranteed a certain amount of traffic, which provides a healthy basis for renting out the facility.
The number of passengers at Málaga Airport was approximately 19.85 million travelers in 2019, which means that it handles over 5 times as many travelers as, for example, Billund Airport. In 2023, the airport set a record with over 22 million travelers, and this is still increasing. In the area around Málaga Airport, there are currently very limited options for long-term parking, which is partly due to the fact that the airport now has the necessary capacity and sufficient passenger numbers to make it worthwhile to create a supply – i.e., a parking facility that meets the demand. Since there is a lack of parking spaces in and around Málaga Airport, Skypark Málaga will meet the need and become the first and only parking facility with direct access to the northern entrance to the airport.
TIME HORIZON
Phase 1 – Q4, 2024:
Fencing of the entire project, electricity and water are installed, and the ground is paved. An administrative office with solar panels has also been set up. There are 450 parking spaces on the ground floor. The project is currently already rented out on the ground floor and has a daily rental rate of between 60-90%
Phase 2 – Q2, 2025:
The construction is expanded, and 1600 parking spaces will be built over 4 floors. Additionally, there will be 50 spaces on the ground floor with associated charging stations for electric and hybrid vehicles. The facility will be fully covered and have 24-hour security.
Phase 3 – Q4, 2025:
The construction described in phase 2 will be completed by the end of 2025. The final details and facade work will be carried out before the project starts operating.
Phase 4 – Q1, 2026:
Start of operations of Skypark Málaga
Fencing of the entire project, electricity and water are installed, and the ground is paved. An administrative office with solar panels has also been set up. There are 450 parking spaces on the ground floor. The project is currently already rented out on the ground floor and has a daily rental rate of between 60-90%
Phase 2 – Q2, 2025:
The construction is expanded, and 1600 parking spaces will be built over 4 floors. Additionally, there will be 50 spaces on the ground floor with associated charging stations for electric and hybrid vehicles. The facility will be fully covered and have 24-hour security.
Phase 3 – Q4, 2025:
The construction described in phase 2 will be completed by the end of 2025. The final details and facade work will be carried out before the project starts operating.
Phase 4 – Q1, 2026:
Start of operations of Skypark Málaga
INVESTMENT
Capital requirement from only: € 14,000.00
Dividend per annum: 9%
70% expected return over a 2-year period.
Security through conventional real estate investment
Passive, fully managed, and hassle-free investment.
No joint liability or capital binding
Phase 1 is currently fully sold out and no longer available!
Dividend per annum: 9%
70% expected return over a 2-year period.
Security through conventional real estate investment
Passive, fully managed, and hassle-free investment.
No joint liability or capital binding
Phase 1 is currently fully sold out and no longer available!
RISK ASSESSMENT – LOW
Like other investments, there are also various risks associated with investing in commercial properties such as airport parking. The primary risk factors are changes in air traffic and the competitive situation: Supply and demand. Given the huge demand for parking spaces in and around Málaga Airport and the fact that this is an off-plan project, Skypark Málaga is considered a low-risk investment.
Changes in air traffic:
In connection with the outbreak of Covid-19, airports across Europe experienced a decline of 60-95%. A decline of this magnitude will naturally negatively affect operations. Fortunately, this is something that Málaga Airport has already overcome in 2021.
In 2023, Málaga Airport had its best year ever, and the Spanish government has decided to invest approximately 90 million euros in its expansion to further increase tourism.
Competitive situation:
As the situation stands today, there are very few secured, fenced parking facilities in and around Málaga Airport, and the options for long-term parking are extremely limited. The company has only one direct competitor, which exclusively offers uncovered outdoor parking at a price of € 28.00 – 60.00 per week. The competitor has very limited capacity with very few parking spaces and minimal security. Additionally, Málaga Airport has approximately 1492 parking spaces that are rented on an hourly basis. However, these parking spaces are not suitable for long-term parking. This is far from enough to meet the needs of travelers.
Skypark Málaga will be the first and only facility with valet service, 24-hour security, and a fenced parking facility with surveillance and direct access to the new northern entrance to the airport. There will be a direct access road from the facility to the terminals at the airport, which means that Skypark Málaga will provide a quick and formal service for customers.
Changes in air traffic:
In connection with the outbreak of Covid-19, airports across Europe experienced a decline of 60-95%. A decline of this magnitude will naturally negatively affect operations. Fortunately, this is something that Málaga Airport has already overcome in 2021.
In 2023, Málaga Airport had its best year ever, and the Spanish government has decided to invest approximately 90 million euros in its expansion to further increase tourism.
Competitive situation:
As the situation stands today, there are very few secured, fenced parking facilities in and around Málaga Airport, and the options for long-term parking are extremely limited. The company has only one direct competitor, which exclusively offers uncovered outdoor parking at a price of € 28.00 – 60.00 per week. The competitor has very limited capacity with very few parking spaces and minimal security. Additionally, Málaga Airport has approximately 1492 parking spaces that are rented on an hourly basis. However, these parking spaces are not suitable for long-term parking. This is far from enough to meet the needs of travelers.
Skypark Málaga will be the first and only facility with valet service, 24-hour security, and a fenced parking facility with surveillance and direct access to the new northern entrance to the airport. There will be a direct access road from the facility to the terminals at the airport, which means that Skypark Málaga will provide a quick and formal service for customers.
ECONOMY
The budget is prepared based on a rental rate of 60-100% with daily prices of € 4.00 – 10.00. The prices are set based on:
1. Our calculations of profitability
2. The general prices for long-term parking in similar parking facilities in Spain and around airports.
3. The alternative parking options available at Málaga Airport.
In 2027, a rental rate of 100% is expected, which is assumed to be achievable due to the company's established clientele and the existing demand for parking options in the area and around the airport. The most uncertain factors in terms of price are the insurance of the properties and the customers' vehicles that are transported between the airport terminals and the parking facility. The final insurance premium is affected by the type of parking primarily booked by customers (long-term parking is generally cheaper to insure than short-term parking, as the latter involves more driving in customers' vehicles than the former).
Additionally, the facility will be exclusively powered by green energy via solar panels to reduce the facility's expenses. Furthermore, both interior and exterior car washing services will be offered to maximize the investors' income from the facility and their investment. The total operating income and expenses of Skypark Málaga are calculated at the end of each financial year in the annual report, which is prepared by the company's auditor. The investors' return is based on the total profit from the operation of Skypark Málaga. The operation includes collective rental of all investors' parking spaces, but also cleaning services for customers' vehicles. The return is therefore not based on the operating income from the individual parking spaces, but rather on the facility's overall operation. Each investor thus receives a share of the profit calculated based on their share (i.e., number of parking spaces) in the project. The profit is distributed among the investors immediately after the completion of the annual report. The payment itself is made to an account designated by the investor.
1. Our calculations of profitability
2. The general prices for long-term parking in similar parking facilities in Spain and around airports.
3. The alternative parking options available at Málaga Airport.
In 2027, a rental rate of 100% is expected, which is assumed to be achievable due to the company's established clientele and the existing demand for parking options in the area and around the airport. The most uncertain factors in terms of price are the insurance of the properties and the customers' vehicles that are transported between the airport terminals and the parking facility. The final insurance premium is affected by the type of parking primarily booked by customers (long-term parking is generally cheaper to insure than short-term parking, as the latter involves more driving in customers' vehicles than the former).
Additionally, the facility will be exclusively powered by green energy via solar panels to reduce the facility's expenses. Furthermore, both interior and exterior car washing services will be offered to maximize the investors' income from the facility and their investment. The total operating income and expenses of Skypark Málaga are calculated at the end of each financial year in the annual report, which is prepared by the company's auditor. The investors' return is based on the total profit from the operation of Skypark Málaga. The operation includes collective rental of all investors' parking spaces, but also cleaning services for customers' vehicles. The return is therefore not based on the operating income from the individual parking spaces, but rather on the facility's overall operation. Each investor thus receives a share of the profit calculated based on their share (i.e., number of parking spaces) in the project. The profit is distributed among the investors immediately after the completion of the annual report. The payment itself is made to an account designated by the investor.
VALET PARKING
The company offers valet parking service, which can be booked online via Skypark's website, by phone, or in person at the airport at all terminal drop-off areas. The service works as follows:
• Booking via Skypark's website, phone, or drop-off area.
• End users arrive at Málaga Airport's drop-off area at one of the individual terminals and hand over their car to Skypark's valet representative. Here, the customer signs a receipt where it is checked whether the vehicle has scratches, damages, or other defects for safety reasons.
• The customer receives a text message with instructions on the parking spot and a code for the key box upon handing over their vehicle.
• The customer's car is parked at the facility.
• When the customer returns, their car is transported to the pick-up area at the respective terminal, after which a text message is sent with instructions and a code for the key box.
The company also expects to offer cleaning of customers' vehicles to maximize the facility's revenue.
• Booking via Skypark's website, phone, or drop-off area.
• End users arrive at Málaga Airport's drop-off area at one of the individual terminals and hand over their car to Skypark's valet representative. Here, the customer signs a receipt where it is checked whether the vehicle has scratches, damages, or other defects for safety reasons.
• The customer receives a text message with instructions on the parking spot and a code for the key box upon handing over their vehicle.
• The customer's car is parked at the facility.
• When the customer returns, their car is transported to the pick-up area at the respective terminal, after which a text message is sent with instructions and a code for the key box.
The company also expects to offer cleaning of customers' vehicles to maximize the facility's revenue.
PROVEN CONCEPT
At present, there are no existing parking spaces with a concept similar to Skypark in Málaga. However, the concept exists in several other European countries, especially near airports at popular tourist destinations.
At many popular tourist destinations in Southern Europe, parking service is an indispensable part of the airport services used by a large number of passengers. Users include holiday homeowners, car rental agencies, airport and airline employees, business travelers, and certain parts of the local population.
Although the parking service model does not yet exist at Málaga Airport, many European airports and parking operators near airports use this model. It is primarily offered at large and busy airports. Our research has shown that parking service is generally only present at airports with +2.5 million passengers per year.
For customers, there are two main advantages of the valet parking model compared to regular parking: 1) time savings and 2) comfort. Valet parking allows the customer to drive to the departure terminal and hand over the car to the staff who will park it. This frees the customer from walking or taking a shuttle bus to the airport. It is a convenient service that increases the overall comfort and travel experience of customers. The biggest disadvantage is that valet parking costs more than regular parking.
For the parking operator, the primary advantage of valet parking is the ability to optimize the occupancy of the parking area by packing more vehicles into the facility. A valet can double the number of parked cars compared to a traditional parking operator.
At many popular tourist destinations in Southern Europe, parking service is an indispensable part of the airport services used by a large number of passengers. Users include holiday homeowners, car rental agencies, airport and airline employees, business travelers, and certain parts of the local population.
Although the parking service model does not yet exist at Málaga Airport, many European airports and parking operators near airports use this model. It is primarily offered at large and busy airports. Our research has shown that parking service is generally only present at airports with +2.5 million passengers per year.
For customers, there are two main advantages of the valet parking model compared to regular parking: 1) time savings and 2) comfort. Valet parking allows the customer to drive to the departure terminal and hand over the car to the staff who will park it. This frees the customer from walking or taking a shuttle bus to the airport. It is a convenient service that increases the overall comfort and travel experience of customers. The biggest disadvantage is that valet parking costs more than regular parking.
For the parking operator, the primary advantage of valet parking is the ability to optimize the occupancy of the parking area by packing more vehicles into the facility. A valet can double the number of parked cars compared to a traditional parking operator.