On 21 September 2017 Japan Investment Adviser Co., Ltd. (JIA), the parent company of JP Lease Products & Services Co., Ltd (JP Lease), and Arena Aviation Capital (Arena) announced the launch of a joint venture (JV), through which JIA will invest in the Arena platform. This solidifies the already existing strategic relationship between the two parties and further increases the potential of Arena for future business growth.
“This investment builds on the foundation laid by our fruitful co-operation during the past two years”, says Patrick den Elzen, Arena Managing Director. “Whilst this transaction solidifies the strategic relationship between Arena and JP Lease, the capital injection enables us to further develop the organization and accommodate the rapid growth of our portfolio of Assets under Management. Not only for JP Lease but also for other Investor customers.”
Arena currently manages 30 aircraft of which 19 for JP Lease. The platform will continue to trade under the name Arena Aviation Capital, in line with Arena’s strategy to facilitate discretionary investments for its investor base under the Arena banner. “We view the Japanese tax equity market as an important and growing source of capital for mid-life and older aircraft, and JP Lease is the perfect partner to access it” says Dirk Jan Smit, Arena CFO. “At the same time we have expanded our team and professionalized our organization to be ready to attract and serve additional sources of capital”.
During the first six months of 2017, Arena managed the acquisition of 12 aircraft for JP Lease leased to first tier airlines worldwide. In the second half of this year to date, letters of intent have been signed for a further 10 aircraft and as such we target to manage a portfolio of 40+ aircraft with a market value approximating US$ 2.0 Bio by year-end.
“I would like to congratulate our colleagues at Arena Aviation Capital for the opportunity to jointly put together this transaction and thank their whole team for their partnership and leadership. We had already built a significant business in recent years and share Arena’s vision on growth and diversification of its investor base.
The creation of this joint venture and our investment forms part of our strategy to grow our presence in the aircraft leasing industry and to ensure that our assets are managed professionally by industry experts for our own customers “, says JP Lease President and CEO Mr. Teiji Ishikawa.
About Arena Aviation Capital:
Arena Aviation Capital is a full-service aircraft investment management company focusing on the complete life cycle of acquiring and leasing used commercial aviation assets, servicing investment and airline customers worldwide and providing services including the origination, financing, risk management, and administration (finance/accounting and legal) of commercial aviation assets. Arena also provides pre-packaged tailor-made solutions for airline customers for their mid and end-of-life assets. Arena today manages 30 aircraft leased to airlines worldwide for customers in Europe, North America and Asia.
About JP Lease:
JP Lease Products and Services Co., Ltd. was established in 2011. JP Lease is a 100% subsidiary of Japan Investment Adviser Co., Ltd. (JIA), which is a listed company on the Tokyo Stock Exchange. JIA is a diversified financial services company active in Operating and Finance leasing, Private Equity Investments, and Mergers & Acquisitions (M&A) Advisory Services.
JP Lease specializes in the Lease finance activities of the group. JP Lease has arranged and manages a portfolio of more than 60 aircraft for its JOL/JOLCO investor clients. JP Lease is also active in Container and Shipping Finance, and Renewable Energy Plants, mainly Mega Solar power generation.