Macquarie Bank led consortium to acquire US car park company, Icon Parking, for US$634 million

18 November 2005

A consortium of investors led by Macquarie Bank today announced that it had signed an agreement to acquire leading New York off-street parking company TMO Parent LLC, operating as Icon Parking Systems (Icon Parking), for an enterprise value of US$634 million (A$869 million), including transaction costs. The acquisition price is subject to working capital and other adjustments.

The consortium also includes four Australian superannuation funds/institutions : MTAA Superannuation Fund, Australian Retirement Fund, Westscheme and Statewide Superannuation Trust.

Icon Parking is owned by the company's founders and Goldman Sachs' Whitehall Street Real Estate Funds.

Icon Parking was established in 1947 and currently owns and/or operates 192[1] off-street car parking locations in New York City, 189 of which are situated in the borough of Manhattan. The significant majority of Icon Parking's facilities operate under long-term leases, with the remainder operating mostly on owned sites. Almost all facilities are operated as valet parking.

Macquarie Bank's Chief Financial Officer, Mr Greg Ward, said the acquisition of Icon Parking was a sound investment in a supply-constrained sector.

"The Manhattan off-street parking sector operates with appealing market dynamics. The establishment of new facilities in key locations in Manhattan is restricted through zoning provisions while demand comes from multiple sources including residential, commercial and leisure customers. The sector has demonstrated average historic growth rates above inflation.

"Icon Parking is a leading operator in the Manhattan off-street parking sector, holding a top two market position by revenue and by number of locations. In addition to growth in the sector, over the past decade Icon Parking has also demonstrated an ability to consistently add new facilities to its portfolio", said Mr Ward.

The Company's experienced senior management team will remain with the business following the acquisition.

The consortium will contribute US$237 million in equity, of which Macquarie Bank will commit US$124.5 million (A$170.7 million), representing a 52.5% stake in the company. The remainder of the enterprise value will be funded by assuming Icon Parking's existing debt, including senior and mezzanine debt, as well as other borrowings.

The consortium will explore a range of options for Icon Parking, including its inclusion in a potential IPO of a Macquarie-managed fund in 2006.

The impact on Macquarie's Tier 1 capital ratio during the holding period is anticipated to be a decrease of 0.7%. Completion of the acquisition is expected during the first quarter of 2006.

Macquarie Securities (USA) Inc. acted as advisor to the Consortium on the acquisition.

[1]A small number of leases in the Icon Parking portfolio may be excluded from the sale prior to financial close

For further information, please contact:

Erica Sibree
Investor Relations
Macquarie Bank Limited
Tel: (612) 8232 5008
Mobile: (614) 1302 6309

Matthew Russell
Public Relations
Macquarie Bank Limited
Tel: (612) 8232 4102
Mobile: (614) 1069 9532

Media Enquiries
Alex Doughty
Corporate Communications
Macquarie group
Tel: (212) 231-1710
Email: alex.doughty@macquarie.com

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