ST Engineering Sets Up Freighter Leasing JV with Temasek

Singapore, 4 August 2021 – Further to the announcement on 11 May 2021, Singapore Technologies Engineering Ltd (ST Engineering) updates today that it has incorporated a joint venture (JV) company, Juniper Aviation Investments Pte. Ltd. in Singapore, with an initial paid-up capital of US$2. ST Engineering Aerospace Resources Pte. Ltd., a subsidiary of ST Engineering, and Temasek each have a 50% share in the JV.

This JV is set up to address the growing demand for freighter aircraft as e-commerce and air cargo volumes expand across the globe. It targets to build a portfolio valued at about US$600m (or about S$800m) within five years, investing in passenger aircraft to be converted into highly efficient freighters. ST Engineering will provide the associated maintenance, repair and overhaul service options for these aircraft.

In addition, ST Engineering will be the asset and lease manager to the JV, consistent with the Group’s aviation asset management business model. Following its incorporation, the JV will set up a subsidiary to hold special purpose companies for the purpose of freighter owning and leasing.

The setting up of this JV is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.