Dubai: The DFM-listed Parkin is adding more parking spaces - as many as 7,456 of them, to be precise. These are all coming at real estate developer owned areas, and represent a contractual period of 4 years.
Parkin will operate and manage these new spots before the end of this month itself. When it comes to future revenues, the RTA affiliated company sure sees a significant boost from the additions. "While our developer-owned parking segment currently accounts for less than 10 per cent of total revenues, paid parking in private developer areas represents a significant growth opportunity for Parkin," said Mohamed Abdulla Al Ali, CEO.
"As such, I am very pleased to collaborate with our partner on this critical project, with close to 7,500 spaces across six communities in the heart of Dubai set to benefit from our expertise as an effective parking solutions provider."
The plan is to have more such 'attractive partnership opportunities in the future'.
This new private developer agreement is testament to the considerable efforts of the senior management team in progressing our growth strategy
Whether it is Salik or Parkin, both RTA entities, the focus after their respective DFM listings has been to create new income sources. Salik has struck a major deal with Emaar to handle billing for vehicles entering The Dubai Mall. Parkin has been hyper focused on adding its network to new locations, either on its own or through developer associations such as the recent deal.
Change in forecast
Before the new deal, Parkin was expecting a decline in the number of developer-owned parking spaces it operates during H1-2024 - from around 17,800 to about 10,000. "This is due to a change in the terms of an agreement with a developer in the Al Sufouh area, where off-street spaces previously operated and managed by Parkin are being redistributed by the developer for the benefit of its own commercial tenants," said a statement.
"However, thanks to the strategic partnership announced today, the additional new parking capacity serves to maintain the number of developer-owned spaces at similar levels to year end 2023," the statement added.
