USA: Trinity Industries and alternative investment manager Wafra have formed the Signal Rail Holdings joint venture which aims to invest up to $1bn over three years in a diversified portfolio of leased wagons.

Wafra will own 90% of the joint venture and TI 10%, with TI supplying and servicing the wagons.

On August 18 Signal Rail finalised the acquisition of an initial portfolio of 3 600 on-lease wagons from TI’s leased fleet.

‘Wafra is pleased to launch this partnership with Trinity, an established market and thought leader in railcar leasing and manufacture’, said Wafra CEO Fawaz Al-Mubaraki. ‘Through this joint venture, Wafra builds on its portfolio of high-quality real asset investments. As long-term investors, we recognise the importance of forming partnerships with industry leaders like Trinity, as well as ensuring meaningful alignment as the basis of shared success.’

Trinity CEO & President Jean Savage said the formation of the joint venture ‘underscores the attractive return and cash flow attributes’ of its wagon assets, and the partnership with Wafra is ‘an important milestone in Trinity’s long-term plan to optimise our balance sheet and amplify our return on equity’.