Sirius Aviation Capital (Sirius), a global aircraft leasing platform based in Abu Dhabi Global Market, has acquired five single-aisle, mid-life aircraft from BOC Aviation. As part of the acquisition, Sirius has entered into a joint venture with Carolous Aviation Leasing (Carolous), a portfolio company of Corrum Capital Management (Corrum Capital). Corrum Capital is a US-based investment firm active in the aviation industry.
Sirius’ share of the joint venture was funded via its commitment from its anchor investor, Abu Dhabi Catalyst Partners (ADCP). ADCP is a joint venture between Falcon Edge (a US investment company) and Mubadala Investment Company (the sovereign wealth fund of Abu Dhabi).
Sirius says that the deal underpins its investment strategy of acquiring in demand single-aisle, mid-life aircraft that are globally on lease to strong airline credits, enabling investors to generate attractive risk – adjusted returns.
“We are pleased to have entered into a joint venture with Carolous to acquire these aircraft and avail of the attractive returns available in mid-life singe aisle aircraft leasing,” says Howard Millar, Chief Executive Officer of Sirius. “Corrum Capital is an experienced aviation investor and an ideal partner. We have launched this joint venture via the purchase of five single aisle aircraft from BOC Aviation and the aircraft are a mix of the in-demand Boeing 737s and Airbus A320s and are leased to strong airline credits (four of the aircraft are in the US and one in the UAE). We look forward to working with the Corrum team over the coming years to acquire and lease more aircraft opportunities to generate attractive returns for our respective investors.”
The five aircraft are on lease to three different carriers: three Boeing 737 NG’s with Southwest (US), one A320 with Spirit (US) and one A320 with Etihad (UAE). The aircraft are on average 10 years old and have a remaining lease term of approximately four years.
Jason Cipriani, Co-Managing Partner of Corrum Capital, said: “We are pleased to have entered into a joint venture with Sirius and ACDP to acquire this high-quality aircraft portfolio with strong airline counterparties. The strategy of the joint venture is consistent with our focus on mid-life narrowbody aircraft on lease to high quality airlines globally. Sirius has a highly experienced team, and we look forward to a continued mutually beneficial relationship.”
James Munce, the Chief Operating Officer of Abu Dhabi Catalyst Partners said: “We are pleased to have entered into a partnership with Corrum Capital as they are a seasoned and successful investor in the aviation industry. The partnership will also facilitate the growth of Sirius’ operations in the ADGM. The completion of this joint venture with Carolous, during the most challenging of years in aviation history, is a testimony to the strength of Sirius’ business model, and we look forward to the opportunities that 2021 may present.”