Dortmund, 23 January 2008 – The DS-Rendite-Fonds Nr. 129 "aircraft fund IV" is scheduled to go into public distribution shortly. On 20 December 2007, Dr. Peters Group took over the first Airbus A380-800 ever to have been commissioned. This state-of-the-art aircraft was handed over to Singapore Airlines during an official ceremony on 15 October 2007, drawing world-wide media interest. Presently the world's largest and most sophisticated wide-bodied aircraft, the A380-800 Airbus has been operating on the intercontinental route between Singapore and Sydney since late October 2007. The response from passengers, pilots and flight crew alike has been overwhelmingly positive. After all, the aircraft has proven to be 100% reliable while at the same time achieving a better-than-expected performance in terms of fuel consumption and range as well as take-off and landing performance.
"By subscribing to this fund, our investors will have the opportunity to become part of economic history while at the same time basing their investment decisions on a sound and security-oriented fund concept that offers attractive distributions," said Jürgen Salamon, Managing Partner of Dr. Peters GmbH & Co. KG, adding: "We are planning to invest, via the DS funds, in four of the first Airbus A380s to be delivered, which equates to an investment volume of approx. USD 800 million. I am very pleased to announce that this move has solidified our company's position at the forefront of the closed-end fund sector. We are offering our investors an outstanding investment opportunity, which in the past had been the prerogative of large institutional investors."
Lessee and long-term lease agreement without any operating cost risk
The lessee, Singapore Airlines, is a member of the world's largest airline network, the Star Alliance. The small but wealthy country of Singapore holds a 55% stake in Singapore Airlines. In terms of profit, Singapore Airlines is the second most successful airline in the world today and, in terms of service, frequently the industry leader. No other airline in the world over the past three decades has been recognised and awarded the honour of being the top airline as often as Singapore Airlines. For instance, only recently, readers of the German financial magazine Capital voted Singapore Airlines, for the seventh consecutive time, the world's best intercontinental airline. The A380-800 has been leased out to Singapore Airlines for a fixed ten-year term at a leasing rate of USD 1,713,418 per month for the duration of the lease period. There is an option to renew the lease for the same terms and conditions after ten years. The fund calculation is based on a conservative follow-on leasing rate of USD 1,275,000. What's more, the lessee bears all the costs arising from the operation and use of the aircraft, including maintenance and insurance, for the duration of the fixed term of the lease agreement. As a result of the long leasing term without any operating cost risk, the fund offers a high level of security with regard to any future fluctuations within the aviation industry and markedly increases the level of visibility for investors through predictable income.
Fund specifications
The security-oriented fund concept provides for a calculated term of 17 years, concluding in 2025. The distributions are projected to increase from 7.25% p.a. as from 2008 to 15% p.a. as from 2022. The projection for the total payout is approx. 222% of the sum invested, including the sales proceeds. With a scheduled equity capital of USD 94.1 million, the planned investment volume of the fund totals USD 218.8 million (including premium). The interest for the long-term bank loan of USD 120 million has been set at a fixed rate for the base term of the lease, largely eliminating the interest risk, as the liabilities to banks will have been almost fully repaid after ten years. The minimum investment is USD 20,000. The fund is denominated in US dollars, enabling investors to make and receive payments in US dollars. Given the current weakness of the US dollar, this provides an attractive entry opportunity for investors.
Market
The aviation sector has been booming for many years now and, according to forecasts, will remain a strong growth industry for the foreseeable future. Passenger numbers are continuously rising. According to market forecasts, passenger volumes will increase annually by 5%, virtually doubling by 2025. The strong demand for air travel will result in an expansion of international long-haul traffic; in fact, the wide-bodied aircraft of the A380-800 type has been specifically designed for economic operation over longer flight routes.
