Dr. Peters Group: Positive overall result for two A380 funds
Dortmund, 5th June 2018:Dr. Peters Group has found a solution for its DS funds No. 129 and No. 130, which will lead to a positive result for equity investors. After the previous lessee, Singapore Airlines, decided not to extend the leasing contracts after the end of the basic term of ten years, a new resolution became necessary. With the newly developed concept, investors can expect further high pay outs over a period of around two years, which, including the returns to date, will lead to a very respectable result.
After extensive as well as intensive negotiations with various airlines such as British Airways, Hi Fly and Iran Air, Dr. Peters Group has decided to sell the aircraft components and will recommend this approach to its investors. From Dr. Peters Group’s point of view, the alternative options negotiated for new aircraft lease agreements did not meet investors' requirements to achieve a suitable result. Even a sale of the aircrafts, which had also been considered, did not meet the conditions demanded by Dr. Peters Group.
Dr. Peters Group will be working with world market leader VAS Aero Services on the sale of the components. The company is a well-versed and reliable partner for the sale of aircraft components with many years of experience working with manufacturers such as Boeing and Airbus. During the two year process the investment companies will generate proceeds of around 45 million USD from the sale of the components alone, according to the preliminary calculation by VAS Aero Services. The main reason for this high assessment is that many airlines currently using the A380-800 will have a high demand for individual replacement components due to upcoming maintenance intervals.
In addition, the strategy is to continue the existing engine leasing agreement with Rolls Royce, or with an airline, beyond March 2019. Due to the increasing number of A380s operated by Rolls Royce, which in turn will require maintenance in the coming years, Dr. Peters Group expects to generate at least the current monthly income of 480,000 USD for each investment company. It is anticipated that the engines will be sold by the end of 2020.
Based on the above figures, Dr. Peters Group expects an overall return of 145 to 155 per cent for investors in DS funds 129 and 130, including currency gains already realised. This includes the repayments already made of approximately 72 percent (DS Fund No. 129) and 81 percent (DS Fund No. 130) and a full repayment of the remaining loans.
It is anticipated that the main components, such as the landing gear or the auxiliary engine, will be sold very quickly, and Dr. Peters Group expects to be able to make an initial payment to investors in the first quarter of 2019.
By following this strategy, Dr. Peters Group achieves a good result for its investors in the current market environment. Anselm Gehling, CEO of Dr. Peters Group, comments: "We are confident that this concept will satisfy and possibly even exceed the current expectations of our investors. Ultimately, this is our main goal."
Gehling further underlines: "The market for the A380-800 aircraft type has not developed positively in recent years. Some airlines have cancelled orders from Airbus, while others have opted for smaller long haul jets. Finally, the ongoing negative discussion about the A380-800 has not led airlines to increasingly rely on this type of aircraft. In light of this development, the concept that has now been finalised is an excellent achievement with a total revenue forecast of around 80 million USD per aircraft".
The investors of DS Fund No. 129 and DS Fund No. 130 are to vote on the concept presented at a shareholders' meeting on the 28th June 2018. If the outcome is positive the strategy will be implemented with immediate effect.