Dortmund, 21 November 2011 — The DS Fund No. 139 Aircraft Fund XIII went into public distribution on 21 November 2011. The fund is characterised by a strong security bias, which is achieved, for example, via a high liquidity build-up as well as cash-flows in matching currencies. With the new fund, Dr. Peters Group continues its successful series of aircraft funds that invest in efficient state-of-the-art aircraft which are leased over long terms by renowned and financially strong airline companies. Seven Airbus A380 aircraft have already been financed via DS funds, with the response to the Airbus A380 from passengers, pilots and flight crew alike being overwhelmingly positive. What's more, in terms of fuel consumption and range as well as take-off and landing performance, the A380 exceeds all expectations. Likewise, the existing fund companies are also performing well. For instance, having already met and in some cases even exceeded projections, a number of sister funds were able to bring their payouts forward. With the DS Fund No. 139 Aircraft Fund XIII, the eighth A380 aircraft – which will also be delivered to Air France – is now being financed.
Fund specifications
The A380 is leased to Air France on a long-term basis at a leasing rate of EUR 1,411,483* per month. After ten years, the lease can be renewed three times, once for a further three years and twice for another two years, at the same leasing rate factor, with only the then current interest rates needing to be adjusted. The fund calculation is based on a conservative follow-on leasing rate of EUR 859,310 upon expiry of 13 years in line with the mid-case value as shown in the AVAC opinion obtained. The security-oriented fund concept provides for a calculated term of 16.7 years, concluding in 2028. The distributions are scheduled on a half-yearly basis and will increase from 7.25% p.a. as from 2012 to 9.00% p.a. as from 2023 and 15.00% p.a. as from 2027. The projection for the total payout is approx. 220.2% of the sum invested, inclusive of sales proceeds. With a scheduled limited liability capital of EUR 69.15 million, the planned investment volume of the fund totals EUR 171.2 million (including premiums). The interest rate for the long-term loan of approx. EUR 98.57 million is fixed during the base term of the lease. As a result, the interest-rate risk is reduced to a large extent, as 78% of the liabilities vis-à-vis banks will have been repaid after ten years and in full after 13 years. The minimum investment is EUR 10,000.
Security parameters
A variety of security parameters distinguish the fund concept from that of other A380 funds. For instance, the DS Fund No. 139 Aircraft Fund XIII is a euro fund, as it will receive its leasing income from Air France during the term of the lease in euro, eliminating any currency risks during this period. Under the contract, Air France is obligated to return the aircraft in "full life condition", while the calculation has been based on "half life condition", thereby creating a financial buffer in excess of USD 13 million. In addition, the fund builds up a liquidity reserve of around EUR 10.1 million after deduction of the remarketing costs of USD 8.0 million included in the calculation. If this liquidity is not needed, it can be paid out to investors. In any case, 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 contractually secured income.
Lessee: Air France
Together with KLM, the intrinsically strong lessee Air France forms one of the world's largest airline groups. The airline operates the most powerful international aviation network and is almost without competition for regional and long-haul services from the two Paris airports, Charles de Gaulle and Orly. As its largest individual shareholder, the French government is closely linked to Air France. Furthermore, large capital shares are also held by airline staff.
