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Related Companies announces investment in Conrac Solutions, leading private operator, developer and financier of consolidated rent-a-car solutions

This transaction is among Related Infrastructure’s first investments.

Related Companies, one of the world’s most prominent private real estate firms, today announced that Related Fund Management has made an equity investment in Conrac Solutions, the leading private operator, developer and financier of airport consolidated rent-a-car facilities (ConRACs). Today’s announcement follows the close of Conrac Solutions and Related’s innovative private financing of a new ConRAC facility to consolidate all of the rent-a-car companies (RACs) into one location at Newark Liberty International Airport in New Jersey⁠—part of the much-anticipated Terminal One Redevelopment Program. The private capital solution used at Newark’s new ConRAC is likely to become a national model as states and municipalities look to private capital providers to better manage the risk associated with many new infrastructure developments and is emblematic of the forward-thinking focus of both Related and Conrac Solutions.

Andrew Right, managing partner of Related Infrastructure, a subsidiary of Related Fund Management, said, “For over a decade, Conrac Solutions has identified unique opportunities in the rapidly evolving transportation landscape and developed deep relationships with rent-a-car companies, airport authorities, major transportation players and municipalities. We have been impressed with the Conrac Solutions management team and see extensive growth prospects for ConRAC and multi-modal transportation hub development, rehabilitation, operation and financing at airports throughout the United States. Further, there are other opportunities to leverage Conrac Solutions’ expertise in the development and operation of shared facilities to enhance efficiency in urban environments. Our shared focus on innovation, and the future state of mobility and the impact of autonomous vehicles, make them an ideal partner for investment and growth. Our partnership will enable the company to further scale operations and grow to serve adjacent markets and opportunities, and also make the incorporation of sustainability initiatives, like solar roofs, electric vehicle charging stations, LED efficient lighting and water reclamation and air quality systems, part of everyday operations at new facilities.”

This transaction is among the first investments by Related Infrastructure, a platform within Related Fund Management, that focuses on investing in operating businesses and select development opportunities, specifically (a) companies that develop, service and manage assets or networks of assets in the transportation and infrastructure sectors, many of which derive substantial value from real estate or real estate related features and components and (b) infrastructure developments where Related’s construction management and real estate development and operational expertise provide a unique perspective and competitive advantage. Related Infrastructure uniquely combines expertise in infrastructure investment, private equity and real estate and derives a significant competitive advantage versus other potential investors by leveraging Related’s corporate expertise in real estate analysis, development and construction to better control costs in the construction, rehabilitation and operation of assets as well as a highly differentiated network to source investment opportunities. Related Infrastructure, in partnership with Brookhaven Rail Partners and Stephens Capital Partners, LLC, recently acquired Pioneer Railcorp, a premier owner of short-line railroads.

“This investment not only marks a milestone for Conrac Solutions, but for the future of on-airport consolidated rent-a-car facilities and beyond," said Chairman and CEO of Conrac Solutions Mark Pfeffer. "Conrac Solutions is eager to put its more than 80-years of combined ConRAC experience and innovation to work in helping shape the evolving transportation ecosystem. Further, we look forward to continuing to work with the RACs and airports in providing the best possible financial and operational solutions to all parties involved.”

Conrac Solutions was formed in the early 2000s to partner with the RACs and Airport Authority on the development of the Ted Stevens Anchorage International Airport ConRAC facility. Since that time, it has worked with the RACs and airports on ConRAC facilities allowing the company to become the leading private developer and operator of ConRACs in the United States. The company works alongside RACs and airports to solve complex design and operational challenges, resulting in a facility that meets the needs of the rent-a-car companies, realizes overall cost savings and enhances airport infrastructure and customer service. Privately delivered projects include Ted Stevens Anchorage International Airport, Austin-Bergstrom International Airport and Bismarck Airport. ConRACs currently under contract for planning/delivery include Bradley International Airport (Hartford, CT) and Newark Liberty International Airport. Conrac Solutions serves as the operator for 11 other ConRAC facilities throughout the United States.

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About Related:
Related Companies is a global real estate and lifestyle company defined by innovation and the most prominent privately-owned real estate firm in the United States. Formed over 40 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington, D.C., Abu Dhabi and London, and boasts a team of over 3,800 professionals. With over $50 billion in assets owned or under development including the 28-acre Hudson Yards neighborhood development on Manhattan’s West Side, The Grand and Related Santa Clara in California and The 78 in Chicago. Related was recently named to Fast Company Magazine’s list 50 Most Innovative Companies in the World. Related also has significant experience investing in operating businesses including its acquisitions of both Equinox and SoulCycle.

Related Fund Management is the investment management arm of global real estate firm Related Companies. Since inception, Related Fund Management has raised over $5 billion of capital across a variety of different investment vehicles and strategies. Related Infrastructure, a division within Related Fund Management, is a platform that focuses on investing in operating businesses and select development opportunities, specifically (a) companies that develop, service and manage assets or networks of assets in the transportation and infrastructure sectors, many of which derive substantial value from real estate or real estate related features and components and (b) infrastructure developments where Related’s construction management and real estate development and operational expertise provide a unique perspective and competitive advantage. Related Infrastructure uniquely combines expertise in infrastructure investment, private equity and real estate and derives a significant competitive advantage versus other potential investors by leveraging Related’s corporate expertise in real estate analysis, development and construction to better control costs in the construction, rehabilitation and operation of assets as well as a highly differentiated network to source investment opportunities. For more information on Related, please visit www.Related.com.

About Conrac Solutions:
Headquartered in Renton, WA, the Conrac Solutions family of companies is the only entity in the United States to have privately developed, on-airport, consolidated rent-a-car facilities. The company is a developer, financial sponsor and operator of ConRACs with experience in pre-development and feasibility, financing strategies, design and construction, activation, operations, asset management and capital project management. Its leadership team has 80 years combined experience delivering privately developed, on-airport ConRACs. Over the past decade, Conrac Solutions has worked closely with the rent-a-car agencies and governing airport entities to find ways to more efficiently and effectively deliver, operate and maintain ConRACs. Completed developed projects include Ted Stevens Anchorage International Airport, Austin-Bergstrom International Airport and Bismarck Airport. ConRACs currently under contract for delivery include Bradley International Airport (Hartford, CT) and Newark Liberty International Airport with 11 facilities across the U.S. under operation. More information may be found at www.conracsolutions.com.

CONTACT:
Related Companies
Joanna Rose
212.801.3902
Communications@related.com