Investment Analysis of Automated Mechanical Parking Garages

Created on 10.30

Overview

With the rapid development of China's economy and the all-round progress of various undertakings, the construction of "smart cities" is of great significance for achieving sustainable urban development, leading the application of information technology, and enhancing the comprehensive competitiveness of cities.
The automated mechanical parking garage is an emerging industry that has gradually developed in recent years to address the increasingly severe parking difficulty caused by the rapid urban development.
In developed countries such as Europe, the United States, and Japan, as well as in economically developed regions of China (e.g., Guangzhou, Shenzhen, Beijing, and Shanghai), it is widely used in the construction of public parking facilities in bustling areas, densely populated commercial districts, and residential areas. It is recognized as a preferred solution to the parking shortage in densely populated and built-up urban areas, which arises from the rapid economic growth of cities and the surge in the number of motor vehicles.
An automated mechanical parking garage refers to an integrated parking facility that uses a set of specially designed mechanical equipment and control systems to realize multi-level automated vehicle parking. It includes mechanical parking garages built with equipment such as lift-and-shift parking systems, aisle-stack parking systems, vertical lift parking systems, and horizontal movement parking systems. In addition to these core equipment, fully automated mechanical parking garages are also equipped with auxiliary facilities, including parking guidance devices, traffic facilities in front of entrances/exits, control and management centers, lighting equipment, alarm devices, power supply equipment, drainage equipment, fire-fighting equipment, safety facilities at entrances/exits, closed-circuit television (CCTV) monitoring systems, and toll collection equipment.

Characteristics of Automated Mechanical Parking Garages

1. Minimal Land Occupancy

The land and construction area required per vehicle is only 1/7 to 1/13 of that of ordinary ground-level parking lots. When storing the same number of vehicles, the cost saved from land purchase by using an automated mechanical parking garage—compared with traditional ground plazas or reinforced concrete self-service parking garages—is sufficient to cover the construction cost of the automated mechanical parking garage.

2. Flexible Site Selection

Each automated mechanical parking garage occupies only 50 to 500 square meters, making it possible to fully utilize small scattered plots in busy downtown areas for high-density vehicle storage.

3. Diverse Types

The design of unit-type and multi-type exteriors can be tailored to the terrain and the characteristics of surrounding main buildings, facilitating the optimization of traffic flow and pedestrian organization in the design and construction process.

4. Convenient Vehicle Access

With fully automated control, users only need to press a button or insert a magnetic card to complete the entire process of parking and retrieving their vehicles.

5. Safety and Reliability

Comprehensive measures such as automatic detection, interlocking control, automatic fire-fighting, flood prevention and drainage, and encrypted magnetic card activation ensure the safety of parked vehicles. Vehicles are protected from wind, rain, sun exposure, and waterlogging, and accidents such as theft, prying, and collision are avoided.

6. Short Construction Period

The construction period for modular assembly and commissioning is only 1/6 to 1/9 of that of ordinary multi-story self-service parking garages.

Applicable Projects

  1. Large commercial districts/office buildings (e.g., supermarkets)
  2. Public parking lots
  3. Tourist attractions
  4. Hospitals
  5. Mature parking lots (investment and acquisition)
  6. Newly built projects and old residential area renovation projects

Cooperation Modes

1. Joint Construction and Operation for Parking Lots in Prime Locations

For parking lots in bustling areas, new construction, reconstruction, or expansion of mechanical parking garages will be carried out based on on-site conditions. The cooperation mode is: the Party A provides the land, while our company invests in construction and operates the garage. We will obtain the operation right for no less than 10 years according to the specific project conditions, and profit sharing will be based on the parking fee revenue.

2. Land Ownership Transfer and Operation for Parking Lots in Prime Locations

For parking lots in bustling areas, the cooperation mode is: the Party A transfers the land ownership, while our company conducts new construction, reconstruction, or expansion of mechanical parking garages based on on-site conditions and operates the garage. We will obtain the land ownership and operation right for no less than 30 years according to the specific project conditions, and be responsible for collecting parking fees and managing the garage.

3. Repurchase of Mature Parking Lots in Prime Locations

We will repurchase mature parking lots in bustling areas and conduct unified fee collection and management.

4. Cooperation for New Residential Areas and Old Residential Area Renovation Projects with High Parking Demand

For newly built residential areas and old residential area renovation projects with high parking demand, mechanical parking garages will be constructed based on on-site conditions. The cooperation mode is: the Party A provides the land, while our company undertakes the construction. Both parties will jointly sell the completed parking spaces, and profit sharing will be based on the revenue from parking space sales.

Advantages of Investing and Financing in Parking Garage Construction

1. Solving Capital Source Issues Thoroughly

Relying on the strong capital strength and financing capabilities of investment companies, the problem of funding sources for parking garage construction can be completely resolved. This enables users to freely carry out the new construction or reconstruction of parking garages and turn potential profits into reality.

2. Ensuring Optimal Construction Schemes

Leveraging the professional capabilities of specialized mechanical parking garage manufacturers (e.g., technology and planning), we can ensure that parking garages are built with reasonably optimized schemes, thereby helping customers achieve a higher return on investment (ROI).

3. Guaranteeing Stable and Reliable Daily Operation

Relying on the comprehensive strength of specialized mechanical parking garage companies in the implementation of security measures and after-sales service networks, the stability and reliability of the daily operation of the completed parking garages are guaranteed.

4. Helping Customers Gain Market Advantages

With the professional capabilities of parking garage investment companies, customers can obtain market information in a timely manner and grasp market trends, ensuring that they remain invincible in the entire business operation.
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