Predicting the financial viability of a temporary multi-storey car park
Almelo city wished to build a temporary multi-storey car park for Park & Ride travellers. The city council was looking to assess the financial viability of this plan.
The land on which the car park was to be constructed was owned by ProRail, the Dutch railway infrastructure owner. With a capacity of 365 parking spaces in the temporary car park, Almelo City and ProRail were looking to assess its financial viability: this would also depend on the value of the underlying land.
Although the financial viability of the car park had been assessed in the past, both Almelo and Prorail were eager to obtain a valuation based on a benchmark. Spark was asked to calculate projected parking revenues taking into account all relevant variables, including P&R rates, operating costs, investments, the number of travellers, etc. Seeing as construction costs would have a negative impact on the financial viability, and as they were not part of the benchmark, these were not included in the calculations. Spark drew up a benchmark-based financial valuation for the underlying land and an analysis of a number of revenue impacting variables.