An affiliate of the Ontario Teachers’ Pension Plan has formed a joint venture with commercial airplane leasing company Aircastle to invest in leased aircraft.
The joint venture’s first investment is two Airbus A330 planes manufactured in 2013 and leased to an Indonesian airline, PT Garuda Indonesia.
Both aircraft were purchased from Aircastle, which acquired them earlier this year upon delivery from Airbus. Over time, the joint venture hopes to acquire between US$500 million ($533.5 million) and US$1 billion ($1.07 billion) of aircraft investments.
“Teachers’ looks forward to working with Aircastle to grow the joint venture,” says Lee Sienna, vice-president of Teachers’ long-term equities group. “Having the ability to invest in aircraft leasing alongside a skilled partner is very attractive and makes this a unique investment vehicle for us.”
Teachers’ currently owns a minority stake in Aircastle consisting of 6.9 million shares.
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