A new fund, led by Australian investment firm Allco Finance Group, has been set up to focus on leasing aircraft in the Chinese market.
The $200m equity fund, set up with investments of $50m each by Allco, Dutch bank ABN AMRO, Beijing-backed CITIC Capital, and the Australian Superannuation Fund, aims to be fully invested within two years.
David Turnbull, former chairman of Hong Kong carrier Cathay Pacific Airways, was named Allco’s Asia chairman and a member of the board of directors. Rod Eddington, former chief executive of British Airways, will act as an independent director to Allco.
The fund, CITIC Allco Investments, will buy new and second-hand aircraft and lease them to the Chinese airline industry, which was profitable and expected to grow quickly thanks to a proliferation of low-cost carriers, Turnbull said. “The growth rate in this part of the world is particularly vibrant and any overcapacity tends to be short-lived,” he affirmed.
Allco Finance Group announced a merger with Australia’s Record Investments to form a company valued at $2.4bn, which led to the creation of a new board of directors, including Turnbull.
Allco manages $4.5bn of equity investments, focusing on property, infrastructure, aviation and shipping.
The company has been valued at $756m or 12.6 times the company’s 2006 net profit before tax, $60m.
The $200m equity fund, set up with investments of $50m each by Allco, Dutch bank ABN AMRO, Beijing-backed CITIC Capital, and the Australian Superannuation Fund, aims to be fully invested within two years.
David Turnbull, former chairman of Hong Kong carrier Cathay Pacific Airways, was named Allco’s Asia chairman and a member of the board of directors. Rod Eddington, former chief executive of British Airways, will act as an independent director to Allco.
The fund, CITIC Allco Investments, will buy new and second-hand aircraft and lease them to the Chinese airline industry, which was profitable and expected to grow quickly thanks to a proliferation of low-cost carriers, Turnbull said. “The growth rate in this part of the world is particularly vibrant and any overcapacity tends to be short-lived,” he affirmed.
Allco Finance Group announced a merger with Australia’s Record Investments to form a company valued at $2.4bn, which led to the creation of a new board of directors, including Turnbull.
Allco manages $4.5bn of equity investments, focusing on property, infrastructure, aviation and shipping.
The company has been valued at $756m or 12.6 times the company’s 2006 net profit before tax, $60m.
Source: Commercial Aviation Online
