Cheung Kong : CKI-led Joint Venture Acquires Park’N Fly’s Vancouver Operation – the Remaining Park’N Fly Business in Canada

[Press Release]

(17 June, 2014 - Hong Kong) Further to the announcement made on 28 May 2014 regarding a Cheung Kong Infrastructure Holdings Limited ("CKI") led joint venture entering into an agreement for the acquisition of the Canadian Park'N Fly off-airport car park business in Toronto, Montreal, Ottawa and Edmonton, the joint venture reached another agreement to purchase Park'N Fly's assets and related land holdings in Vancouver.
The joint venture consists of CKI and Cheung Kong (Holdings) Limited ("CKH"), each owning a 50% interest.
The consideration of the Vancouver transaction is approximately C$33.4 million
(approximately HK$238.48 million).
Upon completion of the transaction, the CKH/CKI joint venture will own 100% of Park'N Fly's business in Canada. With the addition of the Vancouver operation, the joint venture's investment in Park'N Fly has increased from around C$347.6 million (approximately HK$2.482 billion) to around C$381 million (approximately HK$2.72 billion).
Completion of the Vancouver acquisition and the previous transaction for Park'N Fly's
Toronto, Montreal, Ottawa and Edmonton business is expected to take place concurrently in mid to late-July.
Similar to other Park'N Fly operations, the Vancouver operation caters to passengers using the Vancouver International Airport, which is Canada's second busiest airport. This airport accounts for 14% of the total air passenger traffic in the country, and facilitates over
17 million passengers annually. According to Statistics Canada, the air passenger traffic of
Vancouver International Airport had a historical CAGR of 3.9% from 1990 to 2013.

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Park'N Fly is the sole off-airport parking provider for the Vancouver International Airport. Vancouver's Park'N Fly offers valet car park services for business and leisure travelers as well as provides 24-hour shuttle transportation services to ensure fast and easy transfer between the airport and car drop-off/pick up area. Other ancillary services include auto detailing, premium oil changes and automotive maintenance.
Mr. H L Kam, Group Managing Director of CKI, and also Deputy Managing Director of CKH, said, "Vancouver is Canada's second largest city and is the country's gateway to Asia. Its airport benefits from a dense population and a strategic location in the Pacific rim."
"We are very pleased to have the opportunity to purchase Park'N Fly's final assets and related landholdings in Vancouver, completing our ownership of Park'N Fly with a truly
'from coast to coast' off-airport car park solution across Canada," continued Mr. Kam.
"Upon completion of these two Park'N Fly transactions, we will have acquired a Canadian
car park business with a leading market presence 'from coast to coast' at the major airports in
Canada including Vancouver, Edmonton, Ottawa, Toronto and Montreal," Mr. Kam added.
"Park'N Fly is a promising business with a reputable brand name. It has a good growth potential as Canada's air traffic growth continues. The business is poised to generate an immediate recurring cash flow with profitable and stable returns for CKI and CKH," Mr. Kam expressed.
"Capitalizing on our strong financial position, CKI and the Cheung Kong Group's member companies will continue to drive forward our acquisition momentum. Aligning with our disciplined and stringent investment criteria, we look forward to making further investments that generate steady and secure profit," Mr. Kam concluded.
Park'N Fly is the largest off-airport car park company in Canada, and the only national operator. It provides off-airport car park solutions in Vancouver, Edmonton, Ottawa, Toronto and Montreal, and licenses its brand name to the Halifax International Airport Authority ("HIAA") for use of HIAA's off-airport car park.
- Ends -

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Timeline

Park'N Fly's off-airport car park business in Vancouver.

Attachment 1

The corporate logo of Park'N Fly

Attachment 2

Park'N Fly's operations

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