Speaking exclusively about the three now-famed private deals to AIG, a Canadian pension fund and a Deutsche Bank subsidiary, Rear Admiral Richard Larrabee, head of port commerce at PANYNJ, said that going forward, the port authority would expect all new investments to be made by those new terminal operator.<\/p>\n
“That’s not the model that some other big ports are using, resembling a triple net lease. But for us, that’s part of the attraction of this type of new investor. They can access money efficiently, and put it to work – from a strategic standpoint, that’s something we are interested in.”<\/p>\n
The “triple net” system consists of extensive due diligence to ascertain whether these port newcomers are up to the job in hand, determining whether the new owners are going to continue to operate the terminals consistently with the long term interests of this port, and finally the now infamous “consent fee”.<\/p>\n
“The third criteria in our decisions on investors, which got labeled as the ‘Consent Fee’, was an acknowledgement of direct investment that we had made in the facilities. We wanted a certain percentage, one third, of those expenditures that we had made.<\/p>\n
“An important part of the value earned by the Sellers, a premium over what they might otherwise have gotten, was due to public investment – improvements in the facilities made by this Agency.”<\/p>\n","protected":false},"excerpt":{"rendered":"
The triple net lease model pioneered by the Port of New York and New Jersey (PANYNJ) in its latest terminal transactions puts the onus of investment squarely at the door of investors, writes Barry Parker.<\/p>\n","protected":false},"author":8,"featured_media":2991,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[23],"tags":[],"sponsor":[],"class_list":["post-2990","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-north-america"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/posts\/2990","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/comments?post=2990"}],"version-history":[{"count":1,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/posts\/2990\/revisions"}],"predecessor-version":[{"id":2992,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/posts\/2990\/revisions\/2992"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/media\/2991"}],"wp:attachment":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/media?parent=2990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/categories?post=2990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/tags?post=2990"},{"taxonomy":"sponsor","embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/sponsor?post=2990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}