Bahrain-based investment bank, Capital Management House (CMH), in partnership with Novus Aviation and Muzun Partner has acquired a Boeing 777-200ER airliner from Emirates Airlines.
According to the terms of the agreement, the aircraft, fitted with Rolls Royce Trent 8900 engines, will be leased back to Emirates for a fixed six year-term.
The lease agreement will be managed by Geneva based Novus Aviation Services, CMH’s partner in the transaction and a specialist in aircraft sourcing, trading, leasing and other related services. Financing for the acquisition was provided by the London branch of DVB Bank with Trowers & Hamlins acting as the legal advisors and Avitas having conducted the valuation and inspection of the aircraft.
Commenting on the announcement, Khalid A Al Bassam, chairman of CMH, said: “We are delighted to close another transaction in the region’s transportation sector, where we see opportunities to acquire income yielding assets that will not only provide CMH and our strategic investors with strong potential for capital appreciation but, importantly, recurring and sustained income streams. Aviation has shown to be a resilient sector and leasing a lucrative sub-segment with relatively limited downside risk. We are pleased to conclude this acquisition and leasing agreement with Emirates, one of the world’s leading airlines. We continue to look for ways to further diversify our portfolio in promising sectors and asset classes such as this and as seen in our steady flow of recent deals in the logistics and transportation space including the recent purchase in December 2010 of a 30% stake in Skaugen Gulf Petrochem Carriers, aGCC-based petrochemical shipping company. CMH is targeting to replicate such transactions throughout 2011 and has a strong pipeline of opportunities for our investors in these and other sectors in the year ahead.”
Safwan Kuzbari, president of Novus, says: “This transaction marks Novus’ long-term commitment to growing its aircraft leasing investments in partnership with prominent institutions such as CMH. Working together, we look forward to building on the success of this leasing agreement with Emirates and adding further quality aircraft assets to be leased to other top-tier airlines in the coming months.”