14 Jun 2017
Investec agrees to sell aircraft portfolio
Investec has agreed to sell 18 aircraft from its managed leasing funds to funds managed by Oaktree Capital Management, LP, working in conjunction with World Star Aviation. The transaction includes 15 narrow body Boeing 737-800 and Airbus A320-200 aircraft, two wide body Boeing 777-300ER aircraft and an Airbus A330-300 aircraft. The aircraft are on lease to 12 global airlines, including flag carriers Air China, Air France, and LCCs, such as Wizz Air and IndiGo.
Investec’s aircraft leasing funds, which were first launched in 2008, are invested in new generation, fuel-efficient aircraft on lease to leading airlines across the globe. The funds have provided Investec and its institutional investor partners with investment opportunities in a tangible asset class.
Alok Wadhawan, head of Investec Aviation Finance, said:
"As the aviation industry has experienced considerable growth, we remain strongly committed to the continued development of our aircraft leasing activity, a core part of our aviation offering. The risk-return profile and diversification offered by this asset class has led to interest and support from institutional investors.
"This demand has driven our decision to work with our adviser, Goldman Sachs International, to bring an attractive 18 aircraft portfolio to market. While this is an important sale for Investec, we continue to look for aircraft acquisition opportunities alongside our airline and lessor clients."
Investec owns and manages a portfolio of more than 60 aircraft across its aviation business. An active player in the aviation market, Investec has bought 90 aircraft and traded over 20 aircraft in the past five years as well as establishing Goshawk Aviation in 2013, now recognised as one of the leading global aircraft lessors.
Goldman Sachs International is acting as financial adviser and Clifford Chance as legal adviser to the seller.