oslo international airport
expansion of cold storage and air freight services
Nature of Investment:
US$6 million as a Bridge Loan, Convertible Loan or Equity Investment
US$20-22 million as Equity Investment
for projects at Oslo’s busy, growing international airport
If made as a Bridge Loan:
US$6 million for 12 months at 11% per annum,
to facilitate the acquisition of a hangar and adjoining land
for the development of cold storage and logistics space,
repaid through cash flow, secured by assets valued at US$40m
If made as a Convertible Loan or Equity Investment:
Participation in the benefits of the much-needed
cold storage and logistics facilities
and of significant other downstream projects
including an airline
and exports and imports to/from Asia and North America,
with different vehicle options for US and Non US Investors
BACKGROUND & FEATURES
Services development at Oslo International Airport
Our client is a Florida-based aviation group which has entered into an agreement to purchase approx. 21,000 square metres of on-site hangars, distribution centres and aircraft washing facilities at Oslo International Airport for approx. US$20 million. This will give the company 30% of the operating and cargo areas through which to expand and control cold storage space and aircraft loading and unloading at the airport as cargo exports increase. Their planned development (by 2020) of a new 15,000 square metre state-of-the-art cold storage facility in conjunction with Avinor, the Norwegian government airport management group, will further enhance the company’s dominant position at this fast-growing hub.
Financing and Security provided by Existing Owners
The assets to be acquired in fee simple for US$20 million have an appraised value in excess of US$40 million. The current owner will finance US$16 million of the purchase price and will subordinate its lien on the assets to a Lender/Investor providing the additional US$6 million to bridge the transaction (US$4 million for the hangars and US$2 million for operating expenses). Equity participants may invest directly at holding company level or through a Special Purpose Vehicle in a convenient domicile.
New Cargo and Passenger Airline
Immediately following the acquisition of the first hangar and the installation of additional cold storage capacity, the company plans to launch a new airline, Viking International Airlines, to operate a fleet of Boeing 747-400 cargo and passenger aircraft. The airline will initially respond to an urgent need for transport of seafood and other goods out of Norway direct to markets in the US and Asia; later it will add passenger services.
Strong Leadership Team
The Florida-based company with which we are working, and which is looking to purchase the airport assets and develop the new airline, is owned and led by a former Chief Pilot and ex-Navy Seal who in previous roles was responsible for 54 Boeing 747 aircraft, 150 maintenance personnel and 850 crew members. He has also provided advisory and consulting services to the US Department of Defense and Boeing. For this new project he has assembled a Leadership Team with a combined 350-year track record in the aviation industry.