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PE-owned AWAS to sell aircraft to Macquarie

  • Holden Mann
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AWAS Aviation Capital, which is owned by Terra Firma Capital Partners and Canada Pension Plan Investment Board (CPPIB), will sell an operating lease portfolio of 90 aircraft to Australia's Macquarie Group.

According to a release, the planes, mostly Airbus A320s and Boeing 737s, will be part of the Macquarie AirFinance division of the corporate and asset finance (CAF) group. Currently CAF owns operating leases for 130 aircraft. The new planes are leased to 40 airlines, with an average remaining lease term of 6.5 years.

The capital requirement for the purchase is expected to be A$600 million ($470 million). Macquarie will fund the acquisition from existing sources, along with third-party financing arrangements.

Terra Firma has been operating in Asia since 2011, when it opened its Beijing office. It acquired its stake in AWAS in 2006. CPPIB also invests across Asia, having increased its exposure to Asian private equity to $4.1 billion in 2014.

CAF currently has A$29 billion ($23 billion) in assets and loans under management. The sectors in which it operates include aircraft, mining equipment and corporate and real estate lending.

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