First aircraft deal closed for the KGAL Aviation Portfolio Fund 1

Grünwald, 26.03.2015 – The KGAL Aviation Portfolio Fund 1 (APF1), an aircraft portfolio fund for institutional investors managed by KGAL Investment Management, acquired three Embraer 190 aircraft as part of a sale and leaseback deal.

The aircraft were purchased from the airline Finnair. This is the first investment for the fund, which is aimed at institutional investors. The volume of transactions amounts to around 62 million Euros. The leasing agreement with Finnair for the three aircraft has an average term of eight years.

The aircraft leasing fund APF 1, which is currently in the process of raising capital, invests primarily in various models of passenger aircraft, which are leased to international airlines. The aim is to build a portfolio with sustainable and stable dividend distributions.

The Embraer 190 is a marketable jet for medium and short-haul flights. The plane seats 100 passengers and has a range of almost 4,500 kilometres with a full load. This model of aircraft also offers high fuel efficiency and low emission levels.

The transaction took place with the involvement of GOAL German Operating Aircraft Leasing GmbH & Co. KG, a joint venture of KGAL and Deutsche Lufthansa AG. GOAL is also contributing its expertise as an experienced technical asset manager to this fund. It is the largest aircraft operating lessor in Germany. The joint venture is responsible for maintaining and marketing the aircraft. The team of aviation engineers and technicians has extensive market know-how. From regular inspections to detailed document management, they ensure the aircraft retain their value in order to secure their subsequent resale.

The KGAL Group has been actively engaged in the aircraft asset class since 1979. It has completed transactions for around 700 aircraft since then. In the funds business alone, the total investment volume amounts to approximately 6 billion Euros.