Private equity firms and developers are increasingly investing in a highly specialised niche of the commercial property market: aviation-related real estate. Whether aircraft hangars, airport ground leases, conversion sites or commercial fleet structures, institutional investors are increasingly securing long-term commitments in this sector.
Nicholas Carney, partner and head of infrastructure at law firm HSF Kramer, points to growing interest in tangible assets with infrastructure-like cash flows and steady, long-term returns. Airports are a prime example of this, as competitors cannot simply build an alternative in the immediate vicinity. It is precisely this predictability that makes the asset class attractive.
Billion-dollar transactions in airport operators and hangar space
Transaction volumes have recently shown significant momentum. In August, Apollo Global Management acquired a significant stake in Atlantic Aviation from KKR. The transaction valued the private aviation terminal operator at almost $10 billion. Through this, Apollo gained access to more than 100 locations across the United States as well as extensive hangar and office space.
At the same time, Blackstone launched the long-term aircraft leasing programme Equator in April as a joint venture with Dubai Aerospace Enterprise, targeting an investment volume of around $1.6 billion for commercial aircraft. Developers are also expanding: SomeraRoad, through its subsidiary SR Aviation Infrastructure (SRAI), broke ground in October on the redevelopment of a hangar complex in Las Vegas. SRAI focuses on both acquisitions and new development projects in this segment.
Marc Ricks, chief executive of airport management and development company Avports, emphasises that demand in air transport grows stably over very long periods. This consistency correlates with continuous income that often also exhibits a reliable link to inflation.
Structural scarcity and rising maintenance requirements
Alongside reliable revenue streams, an acute shortage of space is driving growing interest. Patrick Hanlon, principal at real estate advisory firm Ackman Ziff, speaks of an availability rate of only around two per cent in the inventory of suitable US hangars. Older hangars often offer neither the space for modern aircraft types nor the technical specifications required for current maintenance, repair and overhaul (MRO) services.
MRO service providers are among the primary tenants of airport hangar space and are seeing strong demand for routine inspections. Because the operational life of modern aircraft is lengthening and, according to Monte Koch, co-founder of SRAI, even aircraft from the 1970s remain in service, investment firms are stepping up their involvement in the sector:
- —Bain Capital acquired a strategic minority stake in MRO Holdings in 2024; in September, equipment provider AAR acquired a 65 per cent majority for $1.8 billion, whilst Bain and co-investors retained 35 per cent.
- —The Carlyle Group holds a long-term commitment in StandardAero, a leading global independent engine maintenance provider.
- —Bridgepoint Group acquired the globally active MRO specialist SK AeroSafety Group in 2023.
- —Blackstone acts as a long-standing debt and equity provider for Jet Support Services and holds shares in Signature Aviation, the leading US network for terminals and hangar facilities.
