Magnetic MRO has entered into a joint venture partnership for aviation asset investments with U.S.-based institutional alternative asset manager Crestline Investors.
The new company will operate as Magnetic Parts Trading and will have a specific focus on acquisitions of narrowbody aircraft such as the Boeing 737 and the Airbus A320, along with acquisitions of their engine types.
The aircraft and their engines will be designated for immediate part-out or short-term lease before being sent to the aircraft boneyard.
As part of the 50-50 split, Estonia’s Magnetic MRO will oversee project managing the investment, part-out and value realisation process, while Crestline will cover the JV’s capital needs.
Magnetic Parts Trading has estimated the first investment projects to be carried out in the third quarter of 2017.
“Strategically this is a huge step for Magnetic MRO, getting us firmly into the aviation asset management area, which is yet another way to differentiate from the low-cost, labour intensive regional MROs,” said Jonas Butautis, chairman of Magnetic MRO. “The joint venture with Crestline Investors was formed as a result of a strategic search for similar-minded global financial partners, who share the views on opportunities to be gained through disciplined investments into mid-life aviation assets.”