The Australian arm of Investec Bank has entered the aircraft leasing business with a $73 million raising for its Global Aircraft Fund (GAF).
The institutional fund has already attracted Australian superannuation funds Stevedoring Employees Retirement Fund, Seafarers Retirement Fund and AUSCOAL Superannuation as its initial investors.
"To raise $73 million of equity as our first offering to institutions in the current market and in an alternative asset class is a pretty good outcome," Investec GAF chief operating officer and head of structured finance in Australia David Phillips said.
The GAF aims to make a stable income by purchasing aircraft and leasing them to airline operators such as Sydney-based Qantas Airways.
"The airline is paying rent for [the aircraft] over time," Phillips said.
"[And] at the end of the lease, the fund investors effectively keep the aircraft and could sell it for a profit or re-lease it to the same or a different airline."
GAF has already purchased three Airbus A321s and two Boeing B737-800 planes as its seed aircraft.
The fund has struck a deal to lease out the Airbus planes to Qantas.
South Africa-based Investec's venture comes at a time when $US2.8 trillion will be needed by 2026 to purchase enough jetliners to meet demands for travellers and cargo transport, according to the France-based Airbus' forecast.
