Super fund Australian Retirement Trust (ART), in partnership with Macquarie Asset Management and PGGM Infrastructure Fund, will contribute around $870 million (US$600 million) to support the acquisition of an aircraft portfolio.
The contribution would support a US$2.2 billion acquisition of 53 current and next-generation commercial passenger aircraft and an order for 20 Boeing 737 MAX aircraft from ALAFCO Aviation Lease and Finance Company K.S.C.P (ALAFCO).
It would also be supported with a US$1.65 billion acquisition facility, underwritten by Citibank, Natixis, BNP Paribas, and MUFG Bank.
“ART is pleased to increase its investment. The diversification of Macquarie AirFinance’s fleet into more efficient and lower emissions aircraft is consistent with our broader strategies to lower net emissions across our portfolio, while never compromising on our members’ best financial interests,” said Michael Weaver, head of global real assets at ART.
“Our partnership with Macquarie and PGGM in Macquarie AirFinance continues to provide ART’s members an attractive investment into a unique asset with diversification benefits across our portfolio.”
Macquarie AirFinance, a leading provider of aircraft leasing and financing solutions founded in 2006, held a portfolio comprised of 189 aircraft leased to 77 airlines across 47 countries and an existing orderbook of 59 Airbus A320neo and A220-300 aircraft.
It is owned by Macquarie Asset Management (50%), PGGM Infrastructure Fund (25%) and ART (25%).
The US$600 million injection would enable the business to further expand and diversify its fleet while improving scale, emissions profile, remaining lease term, average age, and orderbook size.
Jonathan Watkinson-Hall, head of asset finance at Macquarie Asset Management, stated: “This strategic acquisition will enable Macquarie AirFinance to grow its network of customers globally while increasing its exposure to more efficient aircraft.
“As passengers return to the skies and investor appetite for transportation assets strengthens, we are excited to support Macquarie AirFinance as it acquires this attractive portfolio and positions for future growth.”
The transaction was approved by ALAFCO shareholders in late December 2022 and was expected to be completed during 2023, following the satisfaction of customary closing conditions.
