HSBC Asset Finance has become the last of
three banks to exit the rolling stock leasing business with the
sale of Eversholt Rail Group to a private equity consortium.
RBS sold Angel Trains and Abbey disposed of
Porterbrook, also to private equity buyers, in 2008.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The three rolling stock companies, formed
after privatisation of British Rail in the mid-1990s, lost their
attraction for the banks which have re-focused on core operations
since the financial crisis.
Tony Mallin, CEO of consortium member STAR
Capital, and a former FLA and Leaseurope chairman, said that UK
rail leasing would be enlivened by the acquisition.
“The UK train leasing sector will become
more dynamic now. Eversholt is in the hands of a business like
ours, which wants to invest capital. We are looking to expand, to
invest in new trains and in the existing fleet to extend its life.
We have capital available to invest, which will be good for the
future value of the assets and for lessees,” he said.
HSBC raised £2.1 billion for Eversholt, from a
consortium formed of
STAR Capital Partners, 3i Infrastructure and Morgan Stanley
Infrastructure Partners. The investors will take equal stakes
in the business and are funding the acquisition through a
combination of equity and debt.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMallin claimed that banks may not have been
best placed to operate train lessors in the first place. “I have
always thought it is not a sensible place for a business like this
with operating leased assets to sit on a bank’s balance sheet.”
Tammy Samuel, a partner in law firm SNR
Denton’s transport and infrastructure division, agreed that the new
owners were likely to be more proactive than the banks had been.
She said: “The shrinking of business opportunities and the
financial crisis meant that banks decided rolling stock was not
going to be a core part of their business. They have gradually
exited this market as it has become less attractive. New owners who
want to grow the business will probably look to re-enter the new
rolling stock procurement market, which could be an exciting
development for the whole market.”
The full version of this article will appear
in Leasing Life’s December edition. To subscribe to Leasing Life,
click
here.
