Magnetic MRO, an Estonia-based, China-owned technical care and asset management organisation, along with Crestline Investments, a US institutional alternative investment management firm, have announced the launch of Magnetic Leasing, a joint venture (JV) that will focus on long- and short-term aviation asset management and leasing.
The recently established JV will specialise in mid-life Airbus A320 family and Boeing 737 CL/NG aircraft types, as well as engines and landing gear systems for narrow-body aircraft. By the end of this year, Magnetic Leasing expects to have a portfolio worth US$100 million under its management, it says.
“Magnetic MRO, with its universal mind-set and global presence, already possessed various aviation assets that had been acquired from our customers and partners, and which were restored and successfully re-marketed. As 2020 was approaching, there was a strategic decision made to continue diversifying our business in order to ensure further growth in the next decade. Thus, we decided that, amongst other business objectives, we needed to expand our asset management activities, and teaming with Crestline Investments as our partner in this endeavour, we [jointly] created Magnetic Leasing,” states Alex Vella, chief operations officer at Magnetic Leasing.
Currently, joint venture manages an asset portfolio that includes aircraft from the Airbus A320 family, Boeing 737 NG and Boeing 737 CL aircraft, as well as CFM56-3, CFM56-5B, CFM56-7B, V2500-A5, RB211-535 engines and multiple Airbus A320 family and Boeing 737 NG/CL landing gear sets. In five years, the company expects to be managing at least 30 narrow-body aircraft and 20 engines and says it is planning to build a US$500 million portfolio by 2025.
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