IFM Investors has taken a 75% stake in Air Rail, a key player in leasing and maintaining electric ground support equipment across European airports.

The deal highlights a strategic push towards sustainable airport operations and signals ambitious growth plans backed by IFM’s extensive infrastructure investment experience.

Investment management firm IFM Investors has picked up a 75% stake in Air Rail, a company that specializes in leasing and maintaining ground support equipment (GSE) for airports, mainly in Spain and Portugal. The remaining 25% will stay in the hands of Air Rail’s founder, José Manuel García Prieto. Based in Madrid and with a team of over 120 staff members, Air Rail manages a fleet of more than 4,000 GSE units—including passenger boarding stairs, pushback tractors, and baggage carts. These serve over 50 airports across Europe. Interestingly enough, around 70% of that fleet is fully electric, pointing to the company’s dedication to greener airport operations and reflecting a wider industry push toward decarbonising air travel.

García Prieto shared his enthusiasm about the new ownership setup, emphasizing IFM’s deep experience in infrastructure investments and sustainability. “Their approach and expertise make them a perfect partner to help us grow,” he mentioned, hinting that Air Rail plans to speed up expansion not just across Europe but potentially into other parts of the world. This move by IFM is clearly strategic, aiming to tap into the rising demand for air travel and the increasing emphasis on eco-friendly airport solutions—pretty savvy, right?

Now, stepping back a little, IFM Investors has a solid reputation in airports and infrastructure sectors. The firm manages a diverse set of investments, including stakes in 16 airports around the world, which collectively handle over 230 million passengers each year. Most recently, in 2022, IFM bought Sydney Airport for about A$32 billion—impressive, huh? That deal showed they’re capable of managing large, complex infrastructure assets with high operational significance. That kind of experience positions them well to help Air Rail capitalize on current opportunities and tackle the inevitable industry challenges.

Of course, even heavy hitters like IFM face some bumps along the way. For instance, their sale of the Chicago Skyway toll road reportedly resulted in a loss of roughly $1 billion in value—that’s definitely a reminder that infrastructure investments aren’t always smooth sailing and can involve significant risks. Still, they’re actively diversifying into other sectors, such as their role in a consortium for the sale of data centre operator AirTrunk, which is a $20 billion deal, pointing to a broad and varied investment approach—so they’re not putting all their eggs in one basket.

All in all, Air Rail’s acquisition by IFM looks set to be a major move in consolidating and expanding the GSE leasing scene across Europe. By combining Air Rail’s operational know-how and focus on sustainable fleets with IFM’s financial muscle and sector expertise, this could shake things up in the European airport services market. The deal is still awaiting regulatory approval but is expected to finalize later this year, and when it does, it might just alter the competitive landscape.


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Source: Noah Wire Services