Forum Markets, a digital asset platform modernizing capital markets through the tokenization of real-world assets, announced it has closed the acquisition of a commercial aircraft engine for approximately $12 million in cash, expanding the company’s aviation portfolio to four income-generating engines under long-term leases with major U.S. airlines. The company is in the process of finalizing the purchase of an additional engine, with the transaction expected to close in the coming weeks, bringing its aviation portfolio to five engines.
The engine was purchased from Aero Engine Solutions, Inc. in an all-cash transaction and is already generating revenue under an active lease. The lease is expected to generate fixed monthly revenue, supplemented by usage-based fees, with total returns projected to reach double digits annually when combined with the engine’s expected residual value at the end of the lease term. The second engine, once acquired, is expected to be placed on similar lease terms.
The engine is a CFM56-7B model, the most widely utilized commercial turbofan engine in the world and the standard powerplant for the majority of narrow-body aircraft operated by U.S. and international carriers. That scale supports one of the deepest and most liquid secondary markets in commercial aviation, giving the company a large, repeatable pipeline of similar assets as it continues to grow its aviation portfolio. The CFM56-7B’s scale and widespread use also support a deep, liquid secondary market for whole engines, parts, and end-of-life teardown value, which the company expects will deliver predictable income together with downside protection tied to eventual resale.
Over time, Forum Markets intends to explore pooling its aviation engines and offering investors access to the combined cash flows through a structured security, which may include tokenized offerings, consistent with the company’s broader strategy of expanding access to cash-flow-generating real-world assets.
KEY QUOTE:
“This acquisition reflects our strategy of acquiring durable, contractually protected assets that generate predictable cash flow. The CFM56 platform is one of the largest and most established engine families in commercial aviation, which gives us a deep, repeatable pipeline of similar acquisitions. With another engine expected to close in the coming weeks, our aviation portfolio is expected to grow to five engines, meaningfully increasing our contracted cash flows and strengthening the return profile of the segment.”
McAndrew Rudisill, Chairman and Chief Executive Officer of Forum Markets
