Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

'Property on wings' fund takes off on £220m fundraising

'Property on wings' fund takes off on £220m fundraising

Doric Nimrod Air Three (DNA3), a closed-end aircraft leasing fund, has listed with £220 million in assets.

DNA3 is part of a suite of plane funds designed to act like 'property on wings' and historically the strategy has been backed by a host of institutional investors.

Like DNA and DNA2, the first two funds in the range, the managers of DNA3 will snap up four A380 aircrafts and rent them to Emirates.

Each lease will last for up to 12 years and DNA3 will aim to pay investors a dividend of 2.06p per share per quarter, equivalent to an annual dividend of 8.25% per £1 share.

In addition to this regular yield, once the leases have expired the planes will be sold and investors paid out from the residual value.

At the end of 2010, DNA raised in the region of £46 million and was backed by the likes of Baring and Insight Investors.

Explaining the draw of the investment, Insight's Shantanu Tandon said the fund had all the attractions of more typical infrastructure or real asset funds and as well as an income, offered investors the opportunity for growth.

Tandon, who sits in the investment manager’s multi-asset team, said at the time: 'Our investment in Doric is an extension of the infrastructure, or real asset, opportunities which we have been capturing in our multi-asset portfolios.

‘These opportunities capture attractive returns in non-construction related areas. Doric has an attractive return profile given its strong income generation from the leasing of the aircraft.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter