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airport services expansion

OUTLINE

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Nature of Investment:

US$6 million as a Bridge Loan or Convertible Loan

or

US$20-22 million as Equity Investment

for projects at this busy, growing European international airport

 

If made as a Bridge Loan:

US$6 million for 12 months at 11% per annum,

to facilitate the acquisition of a hangar and adjoining land

for the development of cold storage and logistics space,

repaid through cash flow, secured by assets valued at >US$40m

 

If made as a Convertible Loan or Equity Investment:

Participation in the benefits of the much-needed cold storage and logistics facilities

and of significant other downstream projects including

an airline and exports and imports to/from Asia and North America,

with different vehicle options for US and Non US Investors

 

BACKGROUND & FEATURES

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Expansion of Cold Storage and Air Freight Services

Our client is a Florida-based aviation group which has entered into an agreement to purchase approx. 21,000 square metres of on-site hangars, distribution centres and aircraft washing facilities at this European international airport for approx. US$20 million. This will give the company 30% of the operating and cargo areas through which to expand and control cold storage space and aircraft loading and unloading at the airport as cargo exports increase. Their planned development (by 2020) of a new 15,000 square metre state-of-the-art cold storage facility, in conjunction with the national government airport management group, will further enhance the company’s dominant position at this fast-growing hub.

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Financing and Security provided by Existing Owners

The assets to be acquired in fee simple for US$20 million have an appraised value in excess of US$40 million.  The current owner will finance US$16 million of the purchase price and will subordinate its lien on the assets to a Lender/Investor providing the additional US$6 million to bridge the transaction (US$4 million for the hangars and US$2 million for operating expenses).  Equity participants may invest directly at holding company level or through a Special Purpose Vehicle in a convenient domicile.

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New Cargo and Passenger Airline

Immediately following the acquisition of the first hangar and the installation of additional cold storage capacity, the company plans to launch a new airline to operate a fleet of cargo and passenger aircraft.  The airline will initially respond to an urgent need for transport of seafood and other goods direct to markets in the US and Asia; later it will add passenger services.

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Strong Leadership Team

The company is owned and led by a former Chief Pilot and ex-Navy Seal who in previous roles was responsible for 54 Boeing 747 aircraft, 850 crewmembers and 150 maintenance personnel. He has also provided advisory and consulting services to the US Department of Defense and Boeing. For this new project he has assembled a Leadership Team with a combined 350-year track record in the aviation industry.

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Please use the form below to request a Non-Disclosure Agreement and full information.

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