Aviation real estate developer Western LLC has formed a strategic partnership with Oaktree Capital Management and Connor Capital SB to develop, build, finance, and manage corporate and business aviation infrastructure assets across the U.S. Known as American Corporate Airport Partners (ACAP), the new entity is backed by an initial $100 million capital investment by Oaktree to finance hangar construction projects.
“We are extremely excited to form this partnership with Oaktree,” noted Western CEO Brad Henderson. “The depth of knowledge, commitment to improving U.S. transportation infrastructure, and experience of the Oaktree team contribute to the strong strategic and financial partnership that allows Western to scale operations and continue to deliver projects on time and under budget for customers.”
ACAP’s first project, a corporate hangar complex with a 30-year lease at San Antonio International Airport, has already broken ground and is expected to be finished by year-end. The remainder of the Oaktree capital will be applied to future Western projects.
“To date, the ownership of these critical airport assets is highly fragmented and comes with significant barriers to entry,” said Oaktree co-portfolio manager Emmett McCann. “As a result, we believe there is opportunity in this market for ACAP to provide its developmental expertise, as well as seamless financing, for these projects and eliminate the capital burden for airports and their tenants.”