AIP MAKES ITS FIRST ROLLING STOCK INVESTMENT
AIP Management, on behalf of the Danish pension funds PKA and PenSam, is pleased to announce its acquisition of a 30% equity stake in Agility Trains East (“ATE”), a rolling stock fleet of 65 new state-of-the-art Hitachi Class 800/801 Intercity Express trains running on the East Coast Main Line in the UK.
“I am very excited to announce AIP’s first rolling stock transaction adding further diversification to the portfolio. This investment into ATE fits well with AIP’s investment strategy of generating long-term, stable returns for our investors while supporting the sustainable energy transition. Further, it benefits from a state-of-the-art electrified train fleet and long-term contracts with experienced partners with whom we look forward to cooperating in the decades to come”, said Kasper Hansen, Managing Partner of AIP.
The fleet benefits from a long-term government-backed and availability-based 27.5-year guarantee period with the UK Department for Transport, as well as a long-term maintenance agreement with Hitachi. The 65-train fleet is already fully delivered by Hitachi and in service on the East Coast Main Line.
The fleet is comprised of both electric and bi-modal trains, meaning the fleet can operate on both the electrified and non-electrified parts of the East Coast Main Line.
ATE forms the second phase of the Intercity Express Programme (“IEP”), a GBP 5.7bn UK rolling stock programme to manufacture and maintain new Intercity Express trains for the Great Western Main Line and East Coast Main Line in partnership with the UK Department for Transport in developing the IEP to replace Britain’s ageing fleet of Intercity trains. The IEP will provide a new generation of highly reliable and efficient trains for the East Coast Main Lines, setting new standards for train performance and passenger satisfaction in the UK.
The seller is the London-based, listed developer John Laing, developing the project alongside Hitachi. AIP will step into the ownership of ATE alongside Hitachi. The investment is AIP’s first rolling stock investment, and its 4th investment in the UK.
ABOUT AIP MANAGEMENT.
Originally established in 2012, AIP is an independent investment manager dedicated to managing institutional investors’ investments into energy transition and infrastructure assets in Europe and North America. Including ATE, AIP has invested more than EUR 4 billion across 18 assets primarily within the energy transition. The target is to invest up to EUR 1,000 million per year going forward.