A consortium led by Morgan Stanley has agreed to sell its interest in Chicago’s parking meter lease to infrastructure investor Stonepeak, according to a sa report by Bloomberg citing a statement from the office of Chicago Mayor Brandon Johnson.
The parties have signed a purchase and sale agreement covering the long-term concession, with the transaction still subject to approval by the Chicago City Council. Financial terms have not been disclosed.
City officials said the transfer process, initiated last year by Chicago Parking Meters LLC, has now progressed to a formal agreement with Stonepeak. An ordinance related to the transaction is expected to be introduced this week.
The lease traces back to 2008, when former Chicago mayor Richard M Daley approved the sale of the city’s parking meter concession for $1.15bn to a group led by Morgan Stanley alongside Allianz Capital Partners and Abu Dhabi Investment Authority. The agreement runs for 75 years and is set to expire in 2084.
The transaction has long drawn criticism from political leaders and residents, becoming one of the most cited examples of public asset privatisations completed during the financial crisis era. Parking rates across the city increased significantly following the deal, with some downtown meters now charging up to $7 per hour.
Reports earlier this year indicated the administration of Mayor Johnson had explored a potential $3.2bn bid linked to the concession before stepping away from discussions.
The investor group is understood to have already recovered its original investment less than two decades into the lease term.
