BAE Systems to sell its commercial aircraft lease portfolio

May 30, 2011 — BAE Systems

Bulgaria Air BAe 146-300 LZ-HBF (msn E3159) ZRH (Rolf Wallner), originally uploaded by Airliners Gallery.

BAE Systems (Farnborough) on May 26 announced an agreement to sell its commercial aircraft lease portfolio and Asset Management business to investment affiliates of Fortress Investment Group LLC (New York).

According to BAE, “The sale, which is expected to close in the third quarter of 2011, is for a cash consideration of $187 million, subject to certain post-completion adjustments. Completion is conditional, amongst other things, upon regulatory approval.

The business, known as BAE Systems Asset Management, is the world’s second largest regional jet lessor by fleet value and the tenth largest aircraft lessor by fleet size. It has 16 lease customers in 11 countries. The business is responsible for the management of 151 commercial aircraft owned by BAE Systems, which are included within the sale, plus the management of third party owned commercial aircraft on behalf of airlines and investors.

The support and engineering activities of BAE Systems Regional Aircraft are not included in this sale.”

BAE Systems Asset Management was founded in 1993 to manage the portfolio of BAe 146/Avro RJ jetliners and the ATP and Jetstream turboprop airliners. Over the past 17 years to the end of 2010, the organisation has concluded more than 1800 lease, sale and other transactions, worth in excess of $3.1 billion. The business is predominantly based in the UK and employs approximately 70 people.

Fortress is a leading global investment manager with approximately $43.1 billion in assets under management as of March 31, 2011. Fortress offers alternative and traditional investment products and was founded in 1998.

Copyright Photo: Rolf Wallner. Please click on the photo for aircraft information.

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