AMP Capital and PSP Investments to exit Alpha Trains

Australia's AMP Capital and Canada's PSP Investments have agreed to sell their stakes in Alpha Trains, a European rolling stock leasing company.

Australia’s AMP Capital and Canada’s PSP Investments have agreed to sell their stakes in Alpha Trains, a European rolling stock leasing company. No financial terms were disclosed. APG is selling its interest to APG, while PSP is selling its interest to PGGM Infrastructure Fund.

PRESS RELEASE

January 13, 2021

Alpha Trains today announced that AMP Capital, on behalf of investors in its global infrastructure equity platform, has agreed to the sale of its stake in Alpha Trains to APG, which already owns an indirect interest in Alpha Trains. In a separate transaction, the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers, has also agreed to sell its stake in Alpha Trains to PGGM Infrastructure Fund.

Alpha Trains is one of the leading rolling stock companies in Europe, providing flexible leasing solutions to train and locomotive operators across 17 European countries. Its portfolio consists of approximately 855 trains and locomotives. The majority of its fleet is electric, positioning Alpha Trains as a leader of the clean energy transition in European rail.

Shaun Mills, Alpha Trains CEO, said: “Alpha Trains continues to be the leading Continental European rolling stock lessor and our resilience through 2020 highlights the strength of our business. I would like to thank AMP Capital and PSP Investments, our two exiting shareholders, for their support over the last 12 years and I look forward to working with our new shareholders, APG and PGGM Infrastructure Fund, alongside existing shareholder Arcus, to continue to grow and develop the Alpha Trains business.”

AMP Capital and PSP Investments have been investors in Alpha Trains since its establishment in 2008, supporting the business to achieve significant milestones, including:
Doubling the size of the fleet and increasing EBITDA more than three-fold since 2012;
Enhancing the resilience of the business by leveraging Alpha Trains’ competitive advantage in key passenger markets, pivoting to a circa 70% passenger / 30% freight asset portfolio;
Expanding the operating footprint in existing and new geographies, such as Spain, France and Eastern Europe;
Realising Alpha Trains’ commitment to sustainability and clean transport to not only consistently achieve a five-star GRESB rating since 2017, but also successively improving the score year-on-year as a Sector Leader; and
Successfully concluding a complex refinancing to create a flexible and sustainable financing platform to support future growth and become the first ROSCO in Europe to develop and publish a Green Finance Framework fully aligned with the Green Bond and Green Loan Principles.

Adam Petrie, Head of Transport and Head of Asset Management, Europe, AMP Capital, said, “Alongside our co-shareholders and management team, we are proud to have driven the development and growth of Alpha Trains from its inception to become the leading European rolling stock company. Throughout this time Alpha Trains has capitalised on the liberalization of the European rail industry while delivering market leading ESG performance. Alpha Trains is a high-quality business with an important role in the future of European rail and we wish the business continued success.”

Arjan Reinders, Head of Infrastructure Europe, APG, commented: “Alpha Trains is an excellent business with a strong position in the Continental European rail market, together with an attractive and diversified portfolio of assets which generate long-term and resilient cashflows, which fits perfectly with the requirements of our pension funds clients. APG is making a strategic investment in the business, its management and its people, and we intend to further contribute to Alpha Trains’ success and growth over the long term.”

Patrick Samson, Senior Managing Director and Global Head of Infrastructure Investments, PSP Investments, added: “Alpha Trains is a unique business with a solid foundation and strong leadership team. As the leading provider of flexible rail leasing solutions, we are proud to have supported and contributed to their growth and success alongside our partners. We are confident that PGGM Infrastructure Fund will be a positive addition to an already strong partnership – further supporting Alpha Trains’ potential.”

Erik van de Brake, Head of Infrastructure, PGGM: “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.’’

Closing of the transactions are subject to approval by the relevant regulators.
AMP Capital is a global investment manager with a heritage and strength in real estate and infrastructure, and experience in fixed income, equities and multi-asset solutions. AMP Capital has been investing in infrastructure since 1988 and has US$21bn infrastructure equity and debt assets under management as at 30 June 2020*. AMP Capital has been ranked in the top 10 infrastructure managers globally, based on total capital raised**. AMP Capital is owned by AMP Limited, which was established in 1849, and is one of Australia’s largest retail and corporate pension providers.