Temasek and ST Engineering set up freighter leasing joint venture

ST Engineering display at CommunicAsia conference in Singapore in 2019.ST Engineering display at CommunicAsia conference in Singapore in 2019.

Singapore state-owned investment company Temasek Holdings and aerospace company ST Engineering have set up a 50:50 joint venture company, called Juniper Aviation Investments, in Singapore.

The joint venture, which has an initial paid-up capital of US$2, is intended to address growing demand for freighter aircraft as e-commerce and air cargo volumes grow globally, ST Engineering said in a filing to SGX Wednesday.

Juniper Aviation is targeting a portfolio valued at around US$600 million, or around S$800 million, within five years by investing in passenger aircraft to be converted into freighters, the filing said, adding maintenance would be provided by ST Engineering.

Additionally, ST Engineering would be the asset and lease manager for the joint venture, in line with the company’s existing aviation asset management business model, the company said.