Dutch asset managers APG and PGGM are investing undisclosed sums to buy stakes in Europe’s largest independent train leasing company from exiting shareholders AMP Capital and Public Sector Pension Investment Board (PSP Investments).
APG, which already owns a 41.1% indirect interest in Alpha Trains, has agreed to buy AMP Capital’s 20.9% stake in the train lessor. APG previously bought its indirect shareholding from the Arcus European Infrastructure Fund in December 2019.
In a separate deal, PGGM Infrastructure Fund said it has agreed to buy a ”large minority interest” in Alpha Trains from PSP Investments.
AMP Capital and PSP Investments have been investors in Alpha Trains since its establishment in 2008.
Following the latest deals, which are subject to regulatory approval, Alpha Trains will be owned by APG and PGGM, and the remaining founding partner Arcus.
Luxembourg-based Alpha Trains is the largest passenger train leasing company in Europe and number two in the freight locomotive leasing market. The company provides leasing solutions to train and locomotive operators across 17 European countries. Its portfolio consists of 855 trains and locomotives.
Arjan Reinders, head of infrastructure at APG, said: “We have agreed this acquisition at a time of continued growth of the rail passenger and freight markets in Europe, and we believe that the ongoing liberalisation of the European market will drive further investment in the rail sectors.
“We have the ambition to contribute further to the success and growth of Alpha Trains in the long-term.”
Erik van de Brake, head of infrastructure, PGGM, said: “Alpha Trains is a valuable addition to the growing PGGM Infrastructure Fund. We expect the company to continue its strong performance and generate long-term stable revenues for the fund’s participants, including Pensioenfonds Zorg en Welzijn, who are working towards a more sustainable investment portfolio.
“This investment enables long-term pension capital to support the growing demand for sustainable ways of transport in Europe.”
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