The Abu Dhabi Investment Authority (ADIA) and US-based fund Global Infrastructure Partners (GIP) have agreed to buy a majority stake in German railcar lessor VTG, which is valued at $7.4 billion.
Both funds will acquire nearly 73 percent holding in the Hamburg-based company, which owns more than 888,500 railcars – one of the largest privately-owned fleet in Europe. They are buying control from investors including Morgan Stanley Infrastructure Partners.
“The growth of Europe’s rail freight market is backed by a modal shift to rail as a key enabler of the decarbonisation of supply chains,” Khadem AlRemeithi, executive director of infrastructure department at ADIA, said in a statement.
He added the move aligns “with our continued focus on pursuing infrastructure opportunities backed by strong energy transition-related tailwinds.”
ADIA is one of the world’s biggest sovereign wealth funds, which invests on behalf of the Abu Dhabi government.
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