Aircastle Ltd., the commercial jet leasing company, formed a joint venture with Ontario Teachers’ Pension Plan to invest as much as $1 billion in aircraft.
Aircastle will find the investments and provide marketing, asset management and administrative services, according to a statement today from the Stamford, Connecticut-based company. The initial aircraft are two Airbus SAS A330s leased to PT Garuda Indonesia. Financial details weren’t disclosed.
“Having the ability to invest in aircraft leasing alongside a skilled partner is very attractive and makes this a unique investment vehicle for us,” said Lee Sienna, the pension plan’s vice president of long-term equities. The plan, based in Toronto, is Canada’s third-largest pension manager.
Teachers’ owns 6.9 million shares of Aircastle, according to the statement. The stake is 8.5 percent, making the pension plan the second-biggest stockholder, according to data compiled by Bloomberg. Teachers’ said it had C$129.5 billion ($121.4 billion) of net assets as of the end of 2012 and administers pensions for 303,000 active and retired Ontario teachers.