Type: Privatization
Project Name: Privatization of Luis Munoz Marin International Airport
City: San Juan
State: Puerto Rico
Client: Morgan Stanley Infrastructure Fund

Description: Working with Morgan Stanley and the rest of the team, DESMAN provided due diligence efforts and technical advisory services in support of Morgan Stanley’s bid for the 75 year lease concession for the Luis Munoz Marin International Airport (SJU) in San Juan, Puerto Rico. The airport’s parking infrastructure includes a 4,094 space multi-story parking structure and a 742 space parking lot. DESMAN projected the short-term and long-term impact of changes in parking demand and operations and there effects on the revenues and expenses of the parking system over a 75-year period. Regional conditions related to population, public transportation, and competing parking facilities were analyzed. Revenue growth factors which were considered and assessed include rate increases, premium parking options, growth in demand and marketing strategies. DESMAN performed a physical due diligence of all airport parking facilities in order to determine expected, future maintenance and repairs of the facilities. An overall assessment of the legitimacy and accuracy of the Sponsor’s financial analysis and assumptions related to revenue enhancements and future expenses were also reviewed.