Sirius Aviation Capital Holdings (Sirius), a global aircraft lessor based in Abu Dhabi Global Market (ADGM), has acquired five single-aisle, mid-life aircraft from BOC Aviation. This brings the total aircraft acquired from BOC Aviation to ten.
Sirius has entered into a joint venture with certain investment funds managed by HPS Investment Partners (HPS) to acquire these aircraft. HPS is a global investment firm with approximately $69 billion of assets under management.
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 Mubadala Investment Company P.J.S.C. (a sovereign investor owned by the Government of Abu Dhabi and Falcon Edge (a US investment company).
Sirius states that the acquisition 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 the joint venture with HPS to acquire these aircraft on lease to top tier airline credits availing of the attractive returns available in mid-life single aisle aircraft leasing,” said Edward Coughlan, Chief Commercial Officer & Deputy CEO of Sirius. “HPS is a leading global investment firm with significant aviation investment experience. The aircraft portfolio is a mix of the in-demand Boeing 737s and Airbus A320s and are leased to best-in-class airline credits including Southwest Airlines in the US and Air New Zealand. We look forward to building on the relationship with HPS over the coming years by leveraging our industry relationships to, invest in aircraft PLB’s (Purchase and Leasebacks) directly with airlines, acquire aircraft in portfolio opportunities, while delivering attractive returns for our respective investors.”