China Has Smarter Places to Park Money

If there's one message to take away from Asian buyers' heated interest in French parking lot operator Indigo, it's that investors remain hungry for yield and assets are scarce. But those steering away from their traditional targets in the hope of infrastructure-like returns from car spaces should be wary.

With fewer car parks being built in city centers, parking-lot owners have become a hot commodity. Both Indigo and Q-Park NV, an operator that's being sold by Dutch insurance companies and pension funds, have thousands of assets dotted around Europe, and Indigo is also present in North and South America, and the Middle East. Ardian SAS and Predica, part of Credit Agricole SA, are aiming to net about 4 billion euros ($4.3 billion) for Indigo, valuing it at 13 to 14 times earnings. Q-Park could go for more than 2.4 billion euros.