Favorable Investment Opportunities

Important for our Regional Aircraft Fund: The Target Airlines represent the top tier airlines in the industry with direct or indirect state shareholders. A number of them officially report unencumbered assets. In addition, the strong credit provided for access to capital markets for all of the Target Airlines, allowing access to unsecured financings and leaving assets unencumbered. Hence, almost all of the Target Airlines can be expected to have unencumbered assets available.

As shown in the Exhibit, all Target Airlines are currently eager to raise cash funds. With capital markets being jittery, a timely offer of sale/leaseback transactions for these unencumbered assets will be perceived as quick and attractive by airlines.

In prior crises, the Regional Aircraft Fund management was able to source similar transactions for investors as, in these market conditions, the banking sector will restrict funding to top airlines only. The Target Aircraft also represent the most popular aircraft available on the market, giving asset security to financiers and will undoubtedly be in high demand post-crisis

Conclusion for Regional Aircraft Fund

In summary, airlines are looking for quick and easy ways to raise cash, either by selling unencumbered assets or by leasing new deliveries in order to prevent cash outflows.

We know from prior crises that such transactions are most often not made public but rather are the result of a strong relationship with the airline and the ability to offer a financial solution. As this mostly happens outside of an RfP procedure, a confidential, negotiated transaction, favorable to lessor and lessee can be achieved at above average terms and conditions.

At the same time, this window of opportunity is a limited one with quick action required. Once the aviation market rebounds, many less seasoned investors will return to the market, seeking investments in tangible assets. In a world with substantially increased government indebtedness and massive government and central bank liquidity available, investor yields will then once again deteriorate rapidly.

Regional Aircraft Fund under structuring

Prime Invest is currently structuring an Aviation Investment Fund for regional aircraft with EastMerchant. This market is becoming particularly interesting again, because economic growth requires mobility.

• Corresponding global demand growth, independent of regional developments, is a fact.
• A high degree of diversification can be achieved through relatively small investments per aircraft
• Climate neutral air traffic targeted by 2050, therefore also a sustainable investment
• Investors participate in a Luxembourg special fund (RAIF, SICAF)
• Investment target regional aircraft:
  • Large regional aircraft with a seating capacity of 70 to 150 seats
  • New or young aircraft (0 to 5 years old)
  • Aircraft types popular with the airlines
  • Chartering to airlines with solid credit ratings
  • long-term leasing agreements with terms of 8-12 years as a rule
  • Diversification by aircraft type, airline, region and maturity bands
• No running time limitation. If the market environment is attractive, a (partial) Exit can be carried out in a yield-increasing manner.
• Investment units can be redeemed once a year with a notice period of five months to the end of the month
• The target return of the fund is conservatively 8-10% p.a., opportunistically 10-12%,

Experienced partners

Our Aircraft Manager experience of well over 100 aircraft transactions with a volume of over USD 30 billion and is the managing partner of a leasing platform for wide-body aircraft. The professionalism of the players is crucial for purchasing, negotiating terms and conditions, object management and aircraft recyclability. EastMerchant’s portfolios show no defaults whatsoever.

Prime Invest designs club deals for tangible asset investments. Our activities focus on real estate investments, from project development to portfolio properties and developments of multifamily facilities in the USA, as well as opportunities in the aviation sector. Our Diversified Regional Aircraft Fund offers risk diversification in a sustainably growing market that will also survive crises such as Corona. In doing so, we attach importance to aircraft types that are characterized by the lowest possible kerosene consumption. We welcome the efforts towards climate-neutral flying.

We thank you for your attention and are available at all times to answer any further questions you may have.

Der Beitrag Regional Aircraft Fund for Investment Aircraft (2) erschien zuerst auf Prime Invest GmbH.

The pre-crisis market also influences the Investment Aircraft market. Briefly looking back to 2019 as a starting point, the year showed a lower worldwide economic growth of 2.9% (2018: 3.6%) which affected most regions and was partially influenced by lower worldwide trade, inter alia due to the conflict between the US and China. As a result, in the aviation market passenger growth slowed down to 4.2% in 2019 declining below the long-term trend (5.5%) for the first time in 11 years.

In its industry outlook released in December 2019, IATA forecasted a revenue growth of 4.0% to USD 872 bn for 2020. This was in line with a projected worldwide RPK growth of 4.1% in the passenger segment, marking the eleventh consecutive year of passenger growth. Especially South East Asian airlines were expected to show a 20% increase in net profits while European and US markets were to remain strong.

This forecast was rendered obsolete by the spreading of COVID-19 throughout China and Asia in January / February 2020.

Moderate air travel and cargo forecast

Overall global slowdown in air travel and cargo

Current Situation (24.03.2020)

Meanwhile, COVID-19 continued and continues to spread rapidly around the world. While the situation is improving in China and even in East Asia, it is now rapidly declining in the Middle East, Europe and the US.

Travel restrictions are now closing down international aviation where markets with severe restrictions cover 98% of global passenger revenues. A loss of passenger revenue amounting to USD 252 bn worldwide is currently forecast for 2020, assuming, this three months of lockdown and gradual recovery thereafter.

A mitigating factor will be the dramatic fall in oil prices to levels last seen in 2016 coinciding with COVID-19 which will help to soften the impact of lower demand in the passenger and freight segment. However positive impact could be delayed for airlines which already hedged their fuel position for 2020.

Capacity (% change year-on-year) assumptions

Nevertheless, in the Chinese domestic air travel a turning point seems to be reached already. While compared to SARS the initial decline has been much more severe due to China’s increased role in world trade, the turning point has occurred two months earlier.

At the same time passenger yields are stabilizing on China’s domestic market while international yields are still 25% below the prior year.

Passenger Numbers

At this point the correlation between economic growth and growth of the aviation industry (“GDP Correlation”) should be kept in mind. Reflecting on travel behavior during economical challenging times, individual travel to visit friends and relatives or vacation travel will be restricted due to income uncertainty as will business travel due to corporate savings and tightened travel policies. This correlation will remain valid even after the current crisis.

Year-on-Year Change of the World Annual Traffic (RPK) and Gross Domestic Product (GDP)

To address the crisis situation, governments are implementing huge fiscal stimuli equivalent to spending in an amount of between
10 and 20% of annual GDP.

These fiscal stimuli are expected to stop the economic recession expected for 2020 in exceeding that of the World Financial Crisis.

Global GDP growth

Analysis

Irrespective of the short-term development of the COVID-19 crisis which creates high anxieties worldwide (also reflected in significant stock market declines and short-term irrational behavior), the aviation market “benefits” from the fact that it is a cyclical market which has weathered various crises and provides a wealth of datapoints to refer to. In this regard, the lessons of previous crises and their medium to long-term effects on the market provide the basis for consistently successful market players.

Reflecting on the Asia-Pacific market, actually in the past only SARS lead to an annual market decline following which the market rapidly returned to its long-term stable growth trend.

Asia- Pacific Airliners´ Passenger kilometers flown (RPKs)

When looking at previous disease outbreaks (such as SARS, MERS, Avian Flu), the highest impact on Investment Aircraft tended to materialize after three months and at the same time a recovery to pre-outbreak levels was recorded after six to seven months.

Impact of past disease outbreaks on aviation

The term until recovery is still unpredictable and may differ in the current case of COVID-19. Nevertheless, the SARS experience, but also other crises such as 9/11 and the World Financial Crisis have confirmed in multiple instances that the aviation industry is prone to rebound to its original growth path. Hence the current situation should be seen as temporary.

Other than in previous crises, the airline industry benefits from an unprecedented period of profitability spanning a whole decade and resulting in significant cash reserves at the major airlines.

The situation may nevertheless lead to serious problems for weaker airlines. On the other hand, based on their prior experience of state actions during the World Financial Crisis, governments seem to be more willing to support local airlines and help them weather this temporary crisis, as demonstrated by the economic stimuli already announced.

World Traffic Volume in RPK (in millions)

Market Potential for Investment Aircraft

As shown on the previous slides, based on the experience of the past decades and prior industry crises, a rationale view absent of the current situation of emotional news chasing each other dictates that the aviation industry will weather the current crisis and will return to its long-term stable growth path.

The aviation market correlates with GDP growth, which can be expected to return. With a stabilized economic situation and growing income, individual travel demand to visit friends and relatives as well as vacation travel is certain to resume, as is business travel in a globalized economy. While pundits propagate that decentralized home office work will lead to a decline in future travel, we believe that especially the current experience shows, how invaluable personal face to face contacts are.

In this situation the strength of airline credits and liquidity is absolute key to bridge the duration of the crisis until markets rebound. Our in the process of being structured Regional Aircraft Fund management’s experience of successfully weathering several market crises and using these to secure attractive transactions with above-average terms and conditions, provide it with a blueprint for the current market environment to identify airline clients with strong financials and state backing together with state-of-the-art aircraft all of which are certain to benefit from the resulting market consolidation.

With even prime airlines looking to raise cash, the current environment allows for sale/leaseback opportunities as well as other problem-solving products at attractive terms and conditions for investors with committed equity available on time. Furthermore, as aircraft values will drop temporarily, we will be able to source best in class assets at favorable pricing provided sufficient capital can be demonstrated (closing certainty).

Experienced Partners

Our aircraft manager for Investment Aircraft and our in the process of being structured Regional Aircraft Fund can look back on the experience of well over 100 aircraft transactions with a volume of more than USD 30 billion and is managing partner of a leasing platform for wide-body aircraft. The professionalism of the players involved is crucial for purchasing, negotiating terms and conditions, object management and the reusability of the aircraft. The aircraft manager’s portfolios show no defaults whatsoever.

Part two of this blog regional aircraft fund can be found here

Prime Invest designs club deals for tangible asset investments. Our activities focus on real estate investments, from project development to portfolio properties and developments of multifamily facilities in the USA, as well as opportunities in the aviation sector. Our Diversified Regional Aircraft Fund offers risk diversification in a sustainably growing market that will also survive crises such as Corona. In doing so, we attach importance to aircraft types that are characterized by the lowest possible kerosene consumption. We welcome the efforts towards climate-neutral flying.

We thank you for your attention and are available at all times to answer any further questions you may have.

Der Beitrag Investment Aircraft for Regional Aircraft Fund erschien zuerst auf Prime Invest GmbH.

How does a worldwide crisis affect an Aviation Investment Fund? First of all, catastrophically, because the airmen earn their money in the air and not on the ground. Only the most necessary flights are carried out, airports completely close down or restrict traffic. Airlines’ flights are suspended for 95% and more. The aviation industry is in a tough test that only the best will survive.

Aviation Investment Fund current

There will also be a time after each crisis. The planes will fly again and aviation will – newly sorted – resume operations. Airlines with a good credit rating can also survive such periods over a longer period of 6 to 9 months. After a market shakeout they will emerge from this situation stronger.

Global mobility

Worldwide mobility has become an integral part of society and this trend is irreversible. The effects on an aviation investment fund will be correspondingly positive. As long as it is well structured. Developments after previous crises have shown that funds newly launched after a crisis in particular deliver very good performance. The opportunities for an Aviation Investment Fund lie in favourable purchasing opportunities and a good basis for negotiating contractual conditions.

Capital calls from investors

Capital calls from institutional investors will slow down significantly in the near future, but this will lead to higher capital pressure in the long term. Suitable investment opportunities that can also meet the required return expectations will be in even greater demand and sought.

Structuring of an Aviation Investment Fund

Prime Invest is currently structuring an Aviation Investment Fund for regional aircraft with EastMerchant. This market is becoming particularly interesting again, because economic growth requires mobility.

Corresponding worldwide growth in demand, independent of regional developments, will be a fact.

A high degree of diversification can be achieved through relatively small investment sums per aircraft

Climate-neutral air traffic targeted by 2050, therefore also a sustainable investment

Investors participate in a Luxembourg special fund (RAIF, SICAF)

Investment target regional aircraft:
Large regional aircraft with a seating capacity of 70 to 150 seats
New or young aircraft (0 to 5 years old)
Aircraft types popular with the airlines
Chartering to airlines with a solid credit rating
long-term leasing agreements with terms of 8-12 years as a rule
Diversification by aircraft type, airline, region and maturity bands
No running time limitation. If the market environment is attractive, a (partial) exit can be made to increase returns.
Investment units can be redeemed once a year with a notice period of five months to the end of the month
The target return of the fund is conservatively 8-10% p.a., opportunistically 10-12%,

Experienced partners

EastMerchant has experience of well over 100 aircraft transactions with a volume of over USD 30 billion and is the managing partner of a leasing platform for wide-body aircraft. The professionalism of the players is crucial for purchasing, negotiating terms and conditions, object management and aircraft recyclability. East Merchant’s portfolios show no defaults whatsoever.

When is the right time?

The timing for an Aviation Investment Fund for regional aircraft is good under the circumstances. The structuring of the fund can only be implemented if at least USD 50 million of equity capital is committed, as this is the only way to achieve sufficient risk diversification. We expect an Aviation Investment Fund for Regional Aircraft to be realized in mid 2020.

Prime Invest designs club deals for tangible asset investments. Our activities focus on real estate investments, from project development to portfolio properties and developments of multifamily facilities in the USA, as well as opportunities in the aviation sector. Our Aviation Investment Fund Fund offers risk diversification in a sustainably growing market for an exzellent investment aircraft. In doing so, we attach importance to aircraft types that are characterized by the lowest possible kerosene consumption. We welcome the efforts towards climate-neutral flying.

We thank you for your attention and are available at all times to answer any further questions you may have.

Der Beitrag Aviation Investment Fund erschien zuerst auf Prime Invest GmbH.

Real Estate in USA- Corvit 19

The Corona virus has the world under control. In addition to the health effects, which we hope our doctors will be able to control in the near future, the economic consequences will continue to concern us for a long time to come.

Global recession

A global recession is inevitable, all market researchers agree. Real Estate in USA for Family Office will be affected differently depending on the asset class. Hotels are already on the drip, in the office sector the possibilities of the home office are increasingly being discovered, and mail order will grow even further compared to stationary trade. But all of us need always to residence. Only differently. While Class A projects have always been the focus of investors in recent times, this segment will feel the consequences of the recession in real estate in USA particularly hard for family offices. There will no longer be enough households that can afford the expensive rents.

Affordable living space in demand

The problem of affordable housing will continue to increase. The main indicator of housing demand is disposable income. And that is falling, so no amount of ambitious government aid will help. On the contrary: the real economy is being flooded with money to alleviate the current hardships, but in the long term this will lead to further problems that will keep us busy for a long time to come.

Inexpensive production

Beltline, a subsidiary of Atlanta, is leading the general planning for a 47-mile stretch of the old railroad line around downtown Atlanta to revitalize the existing structures. The historic hotspots will be connected with green paths. Initial urbanizations such as the Turner Field Redevelopment or the 352 University Avenue Mixed-Use Project have already been successfully completed and are extremely well received by the population.  Read more by clicking on the picture above. Pictures of the urbanisation give you a good impression of Beltine.

Prime Invest is developing one of the most prominent hotspots of Beltline with a longtime experienced developer team: Murphy Crossing, just south of downtown. An important part of this urbanisation is an assembly plant, in which apartments can be produced at approx. 20% lower costs using a new process.  The development implements the themes of work, living, shopping, art and culture and leisure. In addition to the Assembly Plant, in which parts are assembled for prefabricated house construction, 735 apartments, approx. 5,700 sqm of retail space, half of which is for a supermarket, the other half for regional suppliers, a farmers’ market, 14 loft-style tower houses and a recreation center in which young companies receive start-up assistance and initial support. An event management team organises events and exhibitions throughout the year, thus promoting public life. Greened paths and jogging trails invite to outdoor activities.

New jobs

This will create a total of about 500 jobs. The site is well connected with bus stops and two stations of the Atlanta suburban and underground railway system (MARTA) in the south and north of the site.

With the Assembly Plant and the entire urbanization Murphy Crossing, we manufacture a product with exorbitant demand in the Real Estate in USA for Family Office.

Prime Invest designs club deals for tangible asset investments. Our activities focus on real estate investments, from project development to portfolio properties and developments of multifamily facilities in the USA. We thank you for your attention and will be happy to answer any further questions you may have.

Der Beitrag Real Estate in USA for Family Office erschien zuerst auf Prime Invest GmbH.

The Development include

– A midrise multifamily with 735 apartments

-14 loft terraced houses (townhomes)

-57,000 SQF retail

– A modular assembly system for prefabricated houses with 125,000 SQF, 25,000 SQF of which office space

– public areas, common rooms and facilities for vocational training, education and innovation, Arts and Culture.

The exit strategy provides for a sale after completion and rental. With an investment horizon of around 6 years, an IRR of around 20% is expected.

Winning a tender competition

The plans for this extraordinary Investment multifamily for family office in Atlanta were rewarded by winning the public tender. As part of the Beltline project, which includes upgrading a 27-mile corridor along the old railway line, the Murphy Crossing area will be partially rebuilt on an area of approximately 81,000 square meters and existing buildings will be revitalized. Murphy Crossing, LLC (“Murphy”) has won a competition from the Atlanta Beltline (a subsidiary of the city of Atlanta) for the development of a mixed-use project on 20 acres (approx. 81,000 m2). The site, located about halfway between Downtown Atlanta and Hartsfield International Airport, was formerly a city market where farmers and growers brought their fruit and vegetables from remote areas for sale to local restaurants and households. This idea of ​​the public market is as old as the Middle Ages in Europe and just like in Europe, the economic viability of the city market decreased with the advent of supermarkets. As a result, the city market was closed in the early 1960s. The Murphy Place site is now to be revitalized as part of a major urban planning development.

The location has recently become attractive again as a mixed-use project for revitalization due to its location next to the Beltline. The Beltline is a 27-mile stretch of the former railroad line that circles Atlanta. The route was abandoned by the railways and bought by the Atlanta Beltline. The entire 27-mile length of the Beltline is reserved for pedestrians and cyclists. No cars or scooters are allowed. The Beltline is similar to the High Line in New York City – just much longer!

Investment multifamily for family office: accommodation with quality of life

As part of this Investment multifamily for family office, a mixed-use complex is being created, which includes 725 apartments, 14 loft apartments, 57,000 SQF retail, 28,000 SQF office space, a commercial center with an innovation center and low-emission production for modular components. Almost 500 jobs are created. A quarter to live and work. The rental of the apartments of the Investment Multifamily for family offices is aimed at milliennials, a group of people who are very hard on the rental markets and generate high demand. The apartments are accessed through a green shopping street with shops.

Affordable housing meets demand

Some of the apartments will meet the requirements for affordable housing and thus cover an enormous gap in demand. An aspect that is particularly interesting for an investment multifamily for family offices. After completion and letting, a sale to investors who have specialized in precisely this market segment is planned. The investment multifamily for family offices will therefore be completed after approximately 6 years.

If you are interested, we are happy to answer any further questions.

Retail and corner shops

In addition to chain stores, small, local shops will also offer their goods. A substantial part of the space is earmarked for food retail. Existing trees are preserved and the shopping street is also greened.

Own MARTA -Station

The plot of land intended for this investment multifamily for family offices is accessed by a MARTA stop (Metropolitan Atlanta Rapid Transit Authority) directly on the Murphy Crossing site and ensures the very best connection. The airport in the south with over 70,000 employees and downtown in the north can be reached in just 10 minutes.

Positive effect on the neighborhood

Murphys Crossing becomes a livable, urban space that, like its own habitat, consists of numerous residential, retail, educational and community spaces. The concept of such a sustainable village will have a positive impact on the neighborhood, as the location is literally adjacent to the Beltline. This neighborhood means that residents can go to other redevelopment projects along the Beltline. New, urban, high quality living space is emerging, including entertainment, additional retail and restaurant offerings and public venues. The MARTA stop also makes the location attractive for visitors.

Approximately 20% of the total property will be used for public areas, common areas and facilities for vocational training, education and innovation. Public areas include open, leafy venues for music and other performances, as well as public art exhibitions.

A covered farmers’ market, where suppliers of products “from the farm to the table” can be on site to sell their products, similar to the original city market, is also planned and offers the residents additional quality of life.

More informations

If you are interested in this extraordinary investment multifamily for family offices, we are happy to answer any questions you may have. Do not hesitate to contact us, we look forward to your call.

You are welcome.

Real value investments as a club deal from Prime Invest

Prime Invest structures club deals in the areas of investment aircraft, multifamily and real estate investment.

Der Beitrag Investment multifamily for family office erschien zuerst auf Prime Invest GmbH.

A doubling of the passenger number reality or fiction?

Passenger air traffic roughly doubles every 15 years, as all research agencies agree. Economic fluctuations and different regional growth rates do not change this. The discussion currently taking place in Europe about air pollution from air traffic is of no avail. The aviation pubic discussion, particularly in Europe, because of the climate impact “we do not see as a worry, but as an opportunity,” said Airbus sales manager Christian Scherer in London. As a result, there are no serious braking marks in demand. Rather, this offers Airbus the opportunity to profile itself as a “champion in innovation” in order to reduce global emissions in air traffic. Airlines would probably swap their older jets for new eco models faster. An important aspect for an Investment Aircraft for Familyoffice.

Climate neutral flying and Investment Aircraft for Familyoffice

Even if airlines and airport operators have to serve for the global human-induced climate change: The industry has long since set itself the goal of climate-neutral flying. The global fleet should fly CO2-free by 2050. This should also be possible with the use of regenerative fuels. The engines do not have to be converted and the existing infrastructure can be used. The technology is already there, German companies are far ahead of politics:

A new study by the Fraunhofer Institute examines Morocco as a location to produce synthetic fuel for export.

Huge production facilities are already under construction in the desert regions. Even with substantial Chinese funding.

Growth in economic regions

The major economic regions, such as Europe and North America, are experiencing constant, albeit somewhat slower, growth in air traffic.

Huge pent-up demand in emerging regions

More and more people are making more money. This is leading to more air traffic, especially in the emerging economies. Emerging nations like China cannot meet demand, even if construction is currently being carried out on 50 new airports. India is a market with over a billion people and huge pent-up demand. Airbus market expert Bob Lange expects air traffic in the Indian market to increase five-fold by 2038.
In regions like Indonesia with its more than 6,000 inhabited islands, the plane is the most efficient means of transportation. Africa is a sleeping giant that is slowly awakening. The need is huge.

The framework data cannot be better for an Investment Aircraft for Familyoffice

Even if the aircraft were increasingly avoided as a means of transport in Europe, the number of passengers worldwide would increase. The current worldwide passenger volume is around 4 billion, and by 2038 Airbus is expected to have up to 8 billion passengers a year. The airlines operate at or even beyond their capacity limits, which is also clearly visible in the practice of overbooking.

Long-term forecast

In the recently published long-term forecast, Airbus estimates that 39,210 new passenger and cargo planes are expected to be needed worldwide in the next 20 years. The vast majority of demand relates to smaller aircraft, i.e. regional air traffic. For aircraft with 100 to 150 seats alone, Airbus expects 7,000 units to be used during this period. An important aspect in terms of an Investment Aircraft for Familyoffice.
The annual growth rates in the individual regions from 2018 to 2038 that are expected by statista are remarkable:

China 6.2% p.a.
Middle East 6.2%
Latin America 6.0%
Asia Pacific 5.5%
North America 4.2%
Europe 4.0%

Air traffic growth is expected to continue for generations to come.

Economic importance of air traffic

These figures also reflect the economic importance of aviation: global industry sales in 2019 are estimated at USD 885 billion. Airlines’ profits worldwide are estimated at $ 35.5 billion in 2019. The remaining airlines compensate for the losses of the losers. The aircraft of the airlines disappearing from the market is urgently needed by those who remain: the producers cannot meet the demand at all, Airbus slows down its deliveries in order to be able to deliver them at least on time. A change in the situation is not in sight: The development of a new aircraft type takes more than 15 years and easily devours USD 10 billion and more. Boeing has recently put the plans for the development of a new type on the file, because with the wave of costs on Boeing due to the accidents with the B 737 Max, this is no longer manageable even for such a huge company. This fact also keeps the growing competition of aircraft manufacturers from China and Russia at a distance for decades.

Effects on the labor markets

The effects on the labor markets are also huge: in the Airbus study, an additional demand of up to 550,000 pilots and 640,000 technicians is expected. Not to mention the jobs in the supply industry and the airports.
Top framework conditions for an investment aircraft for family offices.
The framework conditions for a Diversified Regional Aircraft Fund could not be better. Prime Invest is dealing intensively with this topic and is currently structuring a corresponding investment opportunity.

Experience and competence

Prime Invest has been investing in Investment Aircraft for about 20 years. The Aircraft Manger, which is targeted for the fund, has more than 130 successful transactions in excess of $ 30 billion. http://www.eastmerchant.de

Do not hesitate to call us, we look forward to hearing from you. You are welcome.

Der Beitrag Investment Aircraft for Family Office erschien zuerst auf Prime Invest GmbH.

Prime Invest is currently preparing an aircraft fund for family offices. The Family Office Investment Aircraft Fund focuses on the regional aircraft market.

Individualization still possible

It is not yet a finished offer for an investment. Essential features such as e.g. the legal and tax structuring are not fixed yet. Likewise, the individual investment properties have not yet been specifically identified. The term “Diversified Regional Aircraft Investment Fund” is only a working title. At this time Prime Invest is still extremely flexible and can respond to the individual needs of Family Offices. However, the thoughts on the Family Office Investment Fund are already well advanced.

Strong growth worldwide

The regional aircraft market is one of the fastest growing segments of the aviation industry. Airbus expects an additional demand of 6,000 aircraft in this segment by 2037 worldwide. Particularly strong growth is expected in the regions of Indonesia, India and China. In China alone are currently 50 !!! Airports built. 40 new airlines have recently received their AOC Air Operator Certfificate, which corresponds to an operating license. One requirement here is that 25 regional aircraft must first be operated before a long-haul jet can be integrated into the fleet. The regional aircraft market is ideal for a Family Office Investment Aircraft.

Diversification also means spreading risk

In addition to the market segment, the selection of aircraft is of particular importance. In the event of a default of the lessee, aircraft types that are operated by many airlines are generally quickly reused. Important features are cost-efficient operation, homogeneity of the spare parts for the individual aircraft type families, operational compatibility for the respective intended application areas and that the aircraft families can be flown with only one type rating of the pilots. With the selection of various aviation models that are popular with the airlines, high-credit rating airlines, various areas of operation and maturity bands of the leasing contracts, a high degree of risk diversification is achieved.

Experience and competence

Prime Invest has been investing in Investment Aircraft for about 20 years. The Aircraft Manger, which is targeted for the fund, has more than 130 successful transactions in excess of $ 30 billion. http://www.eastmerchant.de

Prime Invest bietet Sachwertinvestitionen für Family Offices als wichtigen Bestandteil der Vermögensdiversifikation

We are looking forward to your contact. You are welcome.

Your Team from Prime Invest.
www.prime-invest-gmbh.com

Der Beitrag Family Office Investment Aircraft erschien zuerst auf Prime Invest GmbH.

Aviation industry relies on climate-neutral flying

Depending on the type of calculation, aviation accounts for around two to five percent of the world’s man-made greenhouse gas emissions. Although aviation’s share of total pollutant emissions is relatively low, climate protection is high on the aviation agenda.

Aviation industry relies on climate protection

Already in 2009, the industry agreed to reduce emissions in order to realize climate-neutral flying in the foreseeable future. The plan of the International Air Transport Association IATA envisages CO2-neutral growth in aviation from 2020 onwards. By 2050, emissions are expected to fall to half of 2005 emissions in spite of growth. The Bureau of the Federal Association of the German Air Transport Industry (BDL) is quoted by the Frankfurter Allgemeine: “We want to achieve that aviation-related CO2 emissions fall to zero”.

Prime Invest relies on climate neutral flying

Prime Invest expressly welcomes this development. Stopping or slowing down the international growth of aviation through prohibitions is a fight against windmills. A national taxation of kerosene would result in the aircraft refueling more fuel abroad, which, because of more weight, would automatically lead to higher consumption. The solution to realize climate-neutral flying is environmentally sound techniques.

The further development of climate-friendly kerosene alternatives requires political will, in other words additional financial resources. In order to finance such projects, the aviation tax of approximately one billion euros per year should be earmarked for this purpose, according to a demand from the industry.

“Using renewable energy, CO2 and water can be used to produce synthetic kerosene, which makes it possible to fly CO2-free, and on a laboratory scale, that’s on a large scale within ten years,” said the advocates for climate-neutral flies.

Better combustion properties

Synthetic fuels have even better combustion characteristics than conventional gasoline or diesel. The quality of synthetic fuels and their use in various transport sectors are already being investigated and assessed by the German Aerospace Center (DLR) and Aviation Fuel Projects Consulting
Europe has the opportunity to take a world-leading role with power-to-liquid technology, which would be a blessing to the environment. Not to mention the enormous economic importance. A development that also meets with great interest in the auto industry. Because with the synthetic fuels existing engines can be operated without modification.

Usig the surplus wind energy

Existing infrastructure could be used for climate-neutral flying. Instead of turning off the wind turbines in northern Germany, because the power grid can not absorb the available energy, synthetic kerosene could be produced from this surplus energy.

Depending on the calculation, the synthetic fuels would cost around € 3.50 to € 5.00 today, without taxes. In the case of large-scale industrial production, this price could possibly be reduced to about € 1.30 or even to € 0.70. A prize that our environment should be worth to us. We only have the one.

Want to know more about Investment Aircraft with Prime Invest? We are looking forward to your contact.

Der Beitrag Climate neutral flying erschien zuerst auf Prime Invest GmbH.

Airbus competitor Boing recently had to announce deep red numbers.

Airbus benefits indirectly from the debacle around the B 737 Max. In particular, the direct competitor of the Max, the A320neo inspires the figures of the group. By 2021 at the latest, production is to be increased to 63 aircraft of this type each month.

Civil aircraft are the cash cows

24 billion euros remain the civil aircraft industry by far the largest division of the Airbus Group. Also with the enterprise profit the civilian aircraft are at the top. Adjusted EBIT rose by 170 percent in the first half of the year to around EUR 2.3 billion.
In the first half of the year, 389 machines were delivered, an increase of 28 percent. By the end of the year, 491 additionally jets will be handed over to customers. Investment Aircraft strengthened by Prime Invest.

Airbus-in-altitude-flight – A220 as investment aircraft

Prime Invest flies along and structures two A220s as aircraft investment for single investors and as a club deal.

From the A 220 21 pieces have already been delivered this year. Two of these are currently being structured as investment aircraft by Prime Invest. The A220 is very popular with almost all airlines for regional air traffic. It is characterized by low consumption and efficient operation. Depending on the version this aircraft between 115 and 149 passengers space.

As a regional aircraft, it serves the strongest growing sub-market in aviation. Due to its manageable size is also good for a single investment. Airbus in altitude flight- fly along.

We are always happy to answer any further questions you may have.

More information can be found in this blog post.

Ticker actually

60 Airbus A220 ordered
Concurrently with the withdrawal of the largest Airbus, the a380, Air France / KLM announced the purchase of 60 Airbus A220-300s as well as options for another 60 aircraft of the same type. The aircraft are to be delivered from September 2021 and all come at Air France used.

The airline will equip its A220-300 with 149 seats. The new machines replace aging A318s and A319s and are expected to cut costs per seat by more than ten percent compared to their predecessors.

Der Beitrag Airbus in altitude flight erschien zuerst auf Prime Invest GmbH.

Prime Invest is currently preparing a new Multifamily Investment for semi-professional investors in the Southeastern United States. An investment in the development of a multi-family residential complex in the US is characterized by short investment time and high income opportunities. The demographic data speak for themselves: research agencies predict sustainable demand for residential real estate. Current developments and the new demands on living space by the population of the Millennials are setting new standards. Meeting these is a challenge to the industry.

Booming residential markets

The residential real estate markets in the USA are booming. While the peak in the Tier 1 cities, e.g. Washington DC and Boston is already reached, the demand in the so-called secondary markets is unbroken. These are about 70 metropolitan areas in the US, which have also proven in the past as a hotspot for in Multifamily Investment.

Facts

There are many reasons for a multifamily investment:
• The US is the largest economy in the world
• Positive growth forecasts are forecast
• The USD is the most important world currency
• The US ranks second in the Global Competitiveness Report (2018), with Switzerland ranking first, Germany fifth
• Population growth is around 2 million people p.a. very dynamic
• The Millennials, a population of 80 million, pushes the rental housing markets
• The baby boomers, whose children are now out of the house, leave their homes and look for attractive rental apartments
• Substantial replacement demand for aging old stock
• The US tax reform favors housing for rent and makes home ownership more expensive
• New jobs are driving demand for rental housing: there are currently around 200,000 new jobs created in the US every month.
• Low correlation with European investments allows for advantageous diversification
• Diversification also possible within the USA

Prime Invest is currently preparing a new Multifamily Investment. A development of a residential complex with more than 300 apartments is in the planning. This investment is still available for a single investor. If necessary, Prime Invest also structures a club deal.

Exit strategy

The exit strategy provides for a sale after stabilization. Stabilization is achieved when the Multifamily Investment is 6 months 95% leased. The investment period will therefore be 3 to 5 years. For individual investments, the exit strategy can be individualized. We recommend short-term exit-strategy. The expected return is in the double-digit range.

Community of interest

The interest of investors is preceded by, only when a certain minimum interest (for example, 8% p.a.) has been achieved for the investor, the actors participate in percentage of the realized results. The actors also participate in the equity to be contributed. Thus a community of interest is formed among all participants.

Experienced partners with impressive track records.

This Multifamily investment is in preparation, there is currently no ready offer. If you are interested in investing in a Multifamily Investment, please contact us. We are happy to consider your individual requirements in the design of this investment opportunity.
We are always available for further questions. We look forward to hearing from you.
You are welcome.

Der Beitrag Multifamily Investment with Prime Invest erschien zuerst auf Prime Invest GmbH.