ST Engineering, Temasek set up freighter leasing joint venture firm

They will both have 50% share in the JV company.

Singapore Technologies Engineering Ltd (ST Engineering) and Temasek incorporated a joint venture company for freighter leasing amidst the demand growth for e-commerce and expansion of cargo volumes globally.

ST Engineering subsidiary, ST Engineering Aerospace Resources Pte. Ltd. and Temasek will each have a 50% share in joint venture company Juniper Aviation Investments Pte. Ltd.

The joint venture plans to build a portfolio at about S$800m within five years, investing in passenger aircraft that will be converted into freighters. ST Engineering, which will serve as the asset and lease manager of the joint venture, will provide associated maintenance, repair, and overhaul service options to the aircraft.

The JV will also set up a subsidiary “to hold special purpose companies for the purpose of freight owning and leasing,” according to ST Engineering’s release.

The JV is not expected to have any material impact on ST Engineering’s consolidated net tangible assets per share and earnings per share for the current financial year, it said.

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