Privately-held investment group Floreat Group has teamed with Mitsubishi UFJ Finance Group (MUFG) to launch a $500 million fund to acquire Boeing and Airbus aircraft.
Floreat states that it has appointed MUFG to source the aircraft that are on lease to airlines globally and arrange debt financing, while Floreat and its clients will provide equity for the portfolio.
It is not clear which particular models of aircraft the new fund will target. Previously, Floreat has created securitisations for Airbus A330s .
“We have previously acquired aircraft on behalf of our clients, and this next transaction is further evidence of our belief in aviation leasing as an income-producing investment,” says Floreat managing director Mark Rogers.
“We are committed to the sector and delighted to be working with MUFG on this mandate, with the long-term potential of this partnership very clear.”
MUFG has some exposure to the aircraft leasing industry through its stake in Mitsubishi UFJ Lease & Finance (MUL), which in-turn owns lessor Jackson Square Aviation. MUL also owns Engine Lease Finance Corporation.
“The partnership between the two institutions is bringing together our strengths, allowing us to be more relevant to our clients and further deepening our impact in the aviation sector,” says Philip Roberts, MUFG’s head of investment banking division for EMEA.
Source: Cirium Dashboard