Transaction
KGAL, through its subsidiary GOAL, the long-standing joint venture between KGAL and Deutsche Lufthansa AG, has successfully concluded a leasing agreement with the Canadian regional airline Porter Airlines for three De Havilland Dash-8 Q400 aircraft. The aircraft are part of the KGAL APF 5 fund, which specialises in aircraft leasing, which will thus grow to a volume of well over 400 million euros.
In 2021, APF 5 was launched as an individual mandate for a German occupational pension fund, despite challenging conditions at the time. GOAL manages the fund as a technical asset manager and is also a co-investor in the special AIF. The financed aircraft type, the De Havilland Dash-8 Q400, is a proven twin-engine turboprop aircraft for a maximum of 90 passengers, which is in service worldwide with a number of more than 1,000 aircraft. Porter Airlines operates one of the largest Dash-8 Q400 fleets in the world.
The projected return performance of APF 5 is developing according to plan and is in the double-digit range (IRR). Further transactions are to follow in the near future.
“As we expected, the market for aircraft financing has returned to a stable growth path. For institutional investors, the significant increase in demand on the lessee side offers numerous opportunities. Our decades of technical and investment expertise, which we can offer together with our subsidiary GOAL, allow us to actively exploit these opportunities for our investors and generate attractive returns from the favourable conditions,” says Stephan Gundermann, Head of Portfolio Management Aviation at KGAL.
KGAL will offer further tailor-made investment solutions for institutional investors in the aviation sector. A new edition of the successful concept is in preparation.
