Car park builder Parkd surges after property developer tie-up
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Parkd (ASX:PKD), a $5.4m micro-cap stock that builds car parks, was one of this morning’s biggest winners after announcing not one but two partnerships that might help it realise its vision.
The company has created a carpark structure that it claims can be built faster and with reduced costs compared to traditional concrete car parks.
The design enables them to be assembled, de-assembled and then used elsewhere dependant on demand for car parks.
Parkd listed on the ASX in late 2017 at 20 cents per share and after falling below that level 6 months later, it hasn’t surpassed it again despite managing to attract some clients in that time.
Today however it announced two major tie-ups, beginning with a Heads of Agreement with property developer Axiom (ASX:AXI).
The deal is for 18 months and facilitates the pair looking for opportunities to develop and construct car parks in Australia.
Parkd chairman Bronte Howson said the deal was a “game changer” and would enable projects that wouldn’t otherwise be viable.
“This partnership presents an exciting opportunity for Parkd to provide an alternative funding solution to traditional capital expenditure,” he said.
While Stockhead has contacted Parkd for further comment, the company also said it was well positioned with multiple enquiries in the private and public sectors, one of those being the second tie up announced this morning.
It announced an Memorandum of Understanding (MoU) with the University of South Australia which could lead to the company building a multi storey car park at the University.
While the deal isn’t binding in the sense it is guaranteed to lead to a car park being built, it provides for a 90-day due diligence period to assess the opportunity and the university cannot deal with the site contrary to these due diligence works.
Park’d shares on the ASX rose by as much as 68% in early trade although Axiom’s were unchanged.