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Investec expands aviation fund fleet with $500m launch

by Sarah Miloudi on Nov 19, 2012 at 10:42

Investec expands aviation fund fleet with $500m launch

Investec has launched its second aircraft fund, a vehicle aims to plough $500 million into fuel efficient planes to lease out.

Announcing the launch of Investec Aircraft Syndicate Limited, Investec Aviation Finance said it plans to rent aircraft to a number of leading, global airlines.

The fund's main aims are to produce a high, single digit cash yield from contracted fixed cashflows locked in for five years.

Today's launch is the second in Investec's aircraft fund fleet, with its previous offering, the Investec Global Aircraft fund, managing close to two dozen plans with an acquisition cost of around $1 billion.

Ramki Sundaram and David Phillips, managers of Investec's Aviation Finance division, said institutional investors such as pension funds and insurance companies have been quick to back the new offering.

'We see an increasing demand for investment in this alternative real asset class, primarily due to the combination of good US dollar cash yields, stable and uncorrelated returns. Investc Aircraft Syndicate aims to satisfy all these requirements,' the pair added.

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