Floreat, the privately-held investment group, is to acquire a USD500 million portfolio of Boeing and Airbus aircraft as it continues to secure opportunities in the aviation finance sector on behalf of clients.
The group, which completed an award-winning securitisation of a USD450 million portfolio of A330s in 2016, has appointed MUFG to source a portfolio of aircrafts, which are on lease to airlines around the globe.
Floreat, which specialises in investments in public and private equity, real estate and private debt, is a long-time supporter of securitisations backed by aviation leases and sees the asset class as a means of providing a diversified source of income for clients.
Under the terms of the agreement, MUFG will arrange the debt financing of the portfolio with Floreat and its clients providing the equity.
Mark Rogers, Managing Director at Floreat, says: “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.”
“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.”
Philip Roberts, MUFG’s Head of Investment Banking Division for EMEA, says: “We are delighted to be able to provide support to Floreat in structuring and arranging its investments into a growing and vibrant sector.”
“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.”