Investment & Industry Advisory

The Real Estate rental sector is the asset class most well known by Investors, both by Institutionals and by Individuals. This also makes it the favored means for Banks to develop a relation with their clients

Real Estate is highly capitalistic , like commercial aviation, so these two sectors present a number of common attributes such as :

1. Long to very long economic useful life
2. Valuation based on cash flow modelling
3. Long term macro trend of growth in demand, for air travel and for real estate ownership
4. Bank debt financing possible on good credits (or locations) to improve net returns

The specific aspect which distinguishes Real Estate from Aviation, is that it’s a highly local market. Therefore requiring local market expertise and data, that Advisors can only bring with local presence

Numera develop its investment advisory service in rental real estate in the regions of Rhone Alpes and Burgundy

Numera opens the doors of Real Estate to Investors willing to find diversification in rental properties in the Euro zone

Should you want to develop your exposure to this rental Real Estate sector, with a focus around Lyon, Rhone Alpes and Burgundy regions, we can advise you all along in the process

The financial return of such Investments ranges between 5-6%

The Aviation sector is highly capitalistic and the players (manufacturers, repair operators, airlines, aircraft lessors) are facing important financing needs over long periods and in USD

Aircraft financing has therefore been at the forefront of financial innovation for a long time, and as soon as the 1970s with the development of leasing and the fundamental separation made possible between an economic user of the Asset (lessee) and legal owner of the same Asset (lessor or investor)

The need for financing is long term and international by the very nature of the Assets involved:

1. commercial Aircraft have long economic useful lives of 25 years,
2. Aircraft can be deployed with multiple different operators,
3. the cash flow generated are long term and predictable and
4. Supply is relatively stable and defined with only a few manufacturers globally

These characteristics bode well with Investors, who are already aware of Alternative assets such as commercial real estate or infrastructure projects both public and private

Numera opens the doors to investments in commercial aviation assets to Investors willing to find diversification in their asset allocation, with an Industry Advisory expertise in this niche sector

Numera has worked with several Airlines globally (USA, Latin America, Europe, Asia, Australia) and a number of Aircraft lessors on every continents

Should you want to develop your exposure to the Aviation sector, we can advise you all along in the process

The financial return of such Investments un-leveraged ranges between 5-7% and bank debt leverage can boost return to 9-10% annually

Movable Assets are not limited to the aviation sector: logistics (container boxes), shipping of goods (vessels), industrial shipping (oil services, offshore drilling, production, maintenance and storage), rail (passenger cars and more importantly fret railcars and locomotives) are among the sectors with marketable and bankable equipment

Investors can position on such Assets with the support of an Indstry Advisor specialist such as Numera

The economic principle is similar to Aircraft leasing or financing: long term lease cash flow, diversified end-user client base, movable assets which can be repositionned, data an historical rents, values, industry comparables are known by experts

Numera has worked with most global lessors of container boxes, railcars and shipping players

The financial return of such Investments before leverage ranges around 7%