What Happened
Private Equity Firms Invest In Airplane Hangars And Airport Ground Leases
Private equity firms are increasingly investing in aviation-related real estate, including airplane hangars and airport ground leases. The demand for suitable hangar space is growing rapidly, driven by the needs of commercial and private aircraft, while the supply of such space is scarce. Companies like Apollo Global Management, Blackstone, and SomeraRoad are investing in the sector, with investments valued at billions of dollars. According to Commercial Observer, the aviation sector offers stable, long-term returns, making it an attractive investment opportunity. The growth in fleet numbers and lifespans is also driven by a growth in air travel itself, with the private aviation space growing even faster than the commercial sector.