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  • [ Case Studies ]
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  • [ Investment management ]

Contract and Asset Management of the Lease of 54 x Alstom Lint 41 DMUs


Challenge
The leasing structure required comprehensive asset and contract management to ensure operational stability and financial performance. The complexity increased with multiple stakeholders, including the PTA, the rolling stock manufacturer (Alstom), and the maintenance provider (VIS in Halberstadt). Further challenges emerged when the original operator faced early concession termination, necessitating a seamless transition to a new operator while maintaining lease and RVG compliance.
  • Client's profile
    3i is a leading investment firm with a dual focus on Private Equity and Infrastructure, specialising in core investment markets across Northern Europe and North America. The firm’s European Operational Projects Fund acquired a portfolio of 54 Lint 41 DMU trains in 2019, structured under a 14-year lease and backed by a conditional Residual Value Guarantee (RVG) issued by the Public Transport Authorities (PTA) under the leadership of NASA in Saxony-Anhalt.
Approach
Apex Rail, having previously advised the initial owner NSFSC on the portfolio sale, was engaged as Contract and Asset Manager for the Lessor. Apex Rail's strategic role included:
  • Stakeholder Coordination: Managing contractual relationships among the Lessor, Lessee, PTA, VIS, and Alstom to ensure smooth operations.
  • Financial Oversight: Regular reporting to the Lessor and Lenders within the Special Purpose Vehicle (SPV) to ensure transparency and compliance with financial obligations.
  • Crisis Management & Transition Planning: Successfully navigating the early termination of the Lessee’s concession by implementing a structured handover process to the successor operator.
  • Risk Mitigation: Overseeing complex contractual adjustments, including lease modifications and compliance with RVG obligations, to protect investment value and operational continuity.
Results & Impact
  • Ensured Asset Performance: Maintained uninterrupted train operations despite the Lessee transition, safeguarding service levels and lease continuity.
  • Optimised Financial Stability: Protected the Lessor’s investment through meticulous contract enforcement and RVG oversight.
  • Demonstrated Special Situations Expertise: Effectively managed early lease return complexities, reinforcing Apex Rail’s capabilities in handling high-stakes asset transitions.
  • Through proactive contract and asset management, Apex Rail not only secured the portfolio’s operational success but also showcased its ability to navigate complex lease and concession scenarios, reinforcing its position as a trusted partner in infrastructure asset management.

Markus Fröhlich

Managing Director in Apex Rail