Aberdeen Standard Investments (ASI) and Rock Rail are delighted to announce the financing of new Hitachi intercity trains for the West Coast Partnership rail franchise. ASI, lead equity provider, and Rock Rail, rail investor-developer and asset manager, together led the transaction of more than £350 million. The fleet will be financed through Rock Rail West Coast PLC and leased to West Coast Partnership, a joint venture between First Group and Trenitalia. First-Trenitalia will take over the franchise from 8 December 2019, operating intercity services as Avanti West Coast.

As with ASI and Rock Rail’s previous new UK rolling stock deals, senior debt is provided by institutional investors with the funder group comprising of Aviva Investors (on behalf of Aviva Life & Pensions UK and other third party clients) and Sun Life Investments.

Based on bullet train technology, the fleet consists of 135 vehicles (10 seven-carriage electric trains and 13 five-carriage electric-diesel bi-mode trains) that will enter service from 2022 across one of the UK’s busiest rail lines connecting the North-West of England, North Wales, the Midlands and London.

The trains will be quieter and greener than the diesel trains they replace and are expected to reduce CO2 emissions by 61% across the franchise.

The passenger travelling experience is set to be transformed, with numerous features including faster, free Wi-Fi throughout, advanced real time passenger information systems, at-seat wireless charging, plug sockets and USB slots, air conditioning and a brand-new catering offer. The trains will benefit from high acceleration and low dwell times along with significantly more seating capacity than their predecessors.

The units being procured will be built at Hitachi’s Newton Aycliffe factory in north-east England supporting thousands of jobs across the UK supply chain.

This is the fourth new UK rolling stock deal that has seen ASI and Rock Rail join together as equity partners. Previous deals were for the financing and provision of new rolling stock for the Great Northern routes, East Anglia and South Western franchises. All four deals combined, represent a long-term investment by pension funds and insurance companies into the UK railway industry of just under £2.5 billion.

Dominic Helmsley, Head of Economic Infrastructure, Aberdeen Standard Investments, said: “This represents the fourth major investment in UK rolling stock through our exclusive partnership with Rock Rail and solidifies ASI’s position as a major player in the funding of UK rolling stock. ASI’s equity funding of this core fleet of trains will help deliver a major upgrade to the services running from London Euston station both operationally and from an environmental perspective.

This transaction aligns with our goals to deliver safe and reliable essential infrastructure to local communities and we appreciate all the parties’ involvements and efforts. We are excited to build the next chapter of West Coast Partnership franchise along with our partners.”

Mark Swindell, Chief Executive Officer, Rock Rail, said: “Rock Rail is delighted to be financing and leasing these world class trains which will bring a step change to the travelling experience for so many rail passengers. The long term, highly competitive funding from leading pension fund and insurance institutions enables significantly enhanced value for money to rail passengers over the life of the trains along with significant improvements in passenger, operational and environmental features.

“We look forward to working closely with First-Trenitalia, Hitachi Rail and all our institutional investor partners to bring these trains into service and help transform rail travel across the West Coast Partnership franchise.”

Sinéad Walshe, Director, Infrastructure Debt at Aviva Investors, said: “We are delighted to continue our successful partnership with Rock Rail and Aberdeen Standard Investments on the West Coast Partnership franchise. The financing of this new state-of-the-art Hitachi fleet delivers much-needed additional capacity to the West Coast mainline in an environmentally positive manner, whilst enhancing overall passenger experience. We believe it will provide our clients with a strong investment opportunity in the long-term and supports the further development of UK infrastructure.”

Monika Comazzi, Senior Director, Project Finance at Sun Life, added: “Sun Life is pleased to provide financing for these state-of-the-art Hitachi trains on the West Coast Partnership franchise led by Rock Rail and Aberdeen Standard Investments. Sun Life is focused on sustainable investments that provide long-term returns for our clients, while making a positive difference environmentally and supporting critical community infrastructure such as transit services.”


Media enquiries

Aberdeen Standard Investments
Debbie Cowe
0131 372 1821

Rock Rail
Mark Swindell
07971 142 109

Notes to editors

Advisors for sponsors:

  • Clifford Chance LLP: Legal
  • DC Advisory: Financial advisor
  • Deloitte LLP: Tax
  • JCRA: Hedging advisor
  • Operis: Modelling advisory
  • [Proskauer Rose LLP: Legal – Shareholder documents (Aberdeen Standard Investment)]
  • SNC-Lavalin Rail and Transit: Technical and Commercial
  • Stevens & Bolton: Legal – Shareholder documents (Rock Rail)

Advisors for funders:

  • CMS Cameron McKenna Nabarro Olswang LLP: Legal
  • Deloitte LLP: Tax
  • Operis: Model auditor
  • SNC-Lavalin Rail and Transit: Technical and Commercial
  • Willis Towers Watson: Insurance

About Aberdeen Standard investments

  • Aberdeen Standard Investments is a global asset manager dedicated to creating long-term value for our clients, and is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments. With over 1,000 investment professionals, we manage £525.7 billion (US$669.6 billion)* of assets worldwide. We have clients in c.80 countries supported by over 40 offices globally. This ensures we are close to our clients and the markets in which we invest. (*as of 30 June 2019)
  • We are high-conviction, long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance.
  • Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange.
  • You can access the Aberdeen Standard Investments media centre here: https://www.aberdeenstandard.com/en/uk/investor/media-centre

About Rock Rail

  • Rock Rail is an investor-developer, owner and asset manager of rolling stock and other rail infrastructure. It leads the development of financing solutions for core rail infrastructure as well as providing asset management services for the same.
  • Rock Rail invests directly and on behalf of institutional investors in core train fleets. As an asset manager it provides a complete range of specialist rail services, managing residual value and protecting the long-term interests of its institutional investors.
  • Since 2016 Rock Rail has secured financing for c.£3 billion of new rolling stock fleets from Siemens, Stadler, Bombardier and Hitachi for operation on 5 UK rail franchises, (Great Northern routes, Greater Anglia, South Western Railway, East Midlands Railway and West Coast Partnership).
  • For more information, please visit: https://www.rockinfrastructure.com

Important Information

For Professional Investors only

The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested. Past performance is not a guide to future results. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. We recommend that you seek financial advice prior to making an investment decision.

The details contained here are for information purposes only and should not be considered as an offer, investment recommendation, or solicitation to deal in any investments or funds and does not constitute investment research, investment recommendation or investment advice in any jurisdiction. Any research or analysis used to derive, or in relation to, the above information has been procured by us for our own use, without taking into account the investment objectives, financial situation or particular needs of any specific investor, and may have been acted on for own purpose. No warranty is given as to the accuracy, adequacy or completeness of the information contained in this communication and no liability for errors or omissions in such information. Readers must make assessments to the relevance, accuracy and adequacies of the information contained in this communication and make independent investigations, as they may consider necessary or appropriate for the purpose of such assessments. Any opinion or estimate contained in this communication, are made on a general basis. No information contained herein constitutes investment, tax, legal or any other advice, or an invitation to apply for securities in any jurisdiction where such an offer or invitation is unlawful, or in which the person making such an offer is not qualified to do so.

United Kingdom issued by Aberdeen Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1XL. Registered in Scotland No. 108419.

Standard Life Investments companies: Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated in the UK by the Financial Conduct Authority.

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