Nashville Airport Authority Launches P3 Procurement

Proposed deal focuses on hotel development.

The Metropolitan Nashville Airport Authority (MNAA) is seeking a private partner to design, build, finance, operate and maintain a hotel development.

The project also entails the design and construction of a parking structure linked to the hotel. Notably, the authority intends to develop and finance the parking structure separately. Calls to the authority regarding the project value and the reasons for separate financing were not immediately returned.

MNAA has released an RFQ for the project, which can be found here. Responses are due on May 2, 2019, but the authority will also hold a prequalification conference in its fourth floor boardroom on February 28 at 3pm (CST).

Nashville’s procurement follows that of Los Angeles World Airports’ roughly $4.9 billion Automated People Mover (APM) P3, and the approximately $2 billion Consolidated Rent-a-Car (ConRAC) facility. Both reached financial close last year.

According to Nossaman, private financing for the APM is comprised of around $1.2 billion in private activity bonds (PABS) issued by the California Municipal Finance Authority on behalf of the LINXS consortium, as well as a $270 million construction period credit facility. Consortium members Fluor, Balfour Beatty, HOCHTIEF, ACS, and Bombardier contributed a combined $103 million in equity for the project.

The LA Gateway Partners consortium delivering the ConRAC project have secured around $458 million in notes due by 2046, as well as a $73 million construction loan for the project. Consortium members Fengate and PCL Construction will provide equity for the project.

Similar to the APM and ConRAC deals, MNAA’s proposed procurement addresses projects linked to the airport rather than a full-on privatization as with Puerto Rico’s Luis Munoz Marin International Airport.

Luis Munoz is the only successful airport privatization in the US. Notably, Oaktree Capital Management in May 2017 sold its 50% stake in the airport to Canada’s PSP Investments and Grupo Aeropuertario del Sureste.

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