AMP Capital has increased its stake in Alpha Trains, continental Europe's largest and most diversified independent train leasing company. The acquisition increases AMP Capital's controlled shareholding from 15 percent to 20.9 percent of Alpha Trains.
Alpha Trains' portfolio comprises around 370 locomotives and 300 passenger trains, which are leased to public and private operators in about a dozen countries across continental Europe. AMP Capital has been invested in Alpha Trains since 2008 when, as part of a consortium, it acquired the company from Royal Bank of Scotland.
Other shareholders of Alpha Trains include Arcus Infrastructure Partners and Canada's Public Sector Pension Investment Board (PSP Investments).
AMP Capital Head of Infrastructure for Europe and the Americas Boe Pahari said:
"Rail transportation is an important sector for us in Europe because of its growth potential. During the past 12 months, we have witnessed increasing market activity in the European train leasing market making AMP Capital an early mover in this attractive investment sector. As the European Union supports increasing competition within the industry, we expect to see further opportunities opening up for private train operators and train leasing companies."
Alpha Trains has strong track record of investing in, leasing and managing passenger train and freight locomotive rolling stock. The current portfolio is managed by an international staff of around 70 people from offices in Antwerp, Cologne and Luxembourg.
Mr Pahari added:
"I'm pleased we have been able to increase our stake as we already know the asset very well and feel that the company offers an excellent business opportunity. This deal is in line with our investment strategy, which includes investing in high-quality assets within our infrastructure business in order to ensure sustainable and long-term value for our investors."