Infracapital enters Germany’s rolling stock market through partnership with Rock Rail

Infracapital, the infrastructure equity investment arm of M&G Plc, has successfully completed its first investment in the German rolling stock market after partnering with Rock Rail, an independent developer, owner and asset manager of rolling stock and other rail infrastructure. Together they will finance new sustainable rolling stock procured for the Leipzig Central German S-Bahn Network 2025+ (MDSB 2025+) project, supporting the decarbonisation of public transport in Germany.

Infracapital and Rock Rail have established a platform that will finance the new electric fleet comprising 18 four-car Siemens Mireo trains. The fleet will enter into service in December 2026 and will be initially leased to DB Regio AG as operator for a period of 12 years. The new trains, based on the existing proven Siemens Mireo platform, will provide a step-change in passenger experience, with optimised train layout, increased capacity per train and a higher operating frequency compared to existing rolling stock operating in the Central German region. The new fleet will also be lighter weight and more energy efficient. The trains will operate on the S4, S6 & S10 lines of the Leipzig network.

Infracapital’s investment will play an important role in supporting Germany’s rolling stock provision in an expanding market supported by high, underlying demand, and a growing emphasis on decarbonising transportation to support the transition to net zero. Private infrastructure capital is expected to play a key role in supporting rolling stock growth, replacing ageing fleets, and developing the country’s sustainable rail market.

Infracapital has significant expertise of successfully managing transport and rail assets in the UK and this transaction represents Infracapital’s third investment to date in Germany.

Priya Veerapen, Managing Director at Infracapital, said: “This partnership with Rock Rail will support Infracapital’s mission to invest in infrastructure assets which are key to Europe’s sustainable future. Germany’s liberalised rolling stock market sits at an exciting crossroad as the country seeks to double passenger rail numbers by 2030. We see a strong pipeline in the years ahead as government agendas in the UK and Europe are increasingly focused on delivering improved and cleaner public transport systems for a growing passenger base. We look forward to working with Rock Rail and other stakeholders to drive further growth in the years ahead”.

Mark Swindell, Chief Executive Officer at Rock Rail, said: “Rock Rail has been working in Germany since 2018 and has strong relationships with all the German regional public authorities, operators and manufacturers. We are delighted to have worked on our second deal in Germany with Infracapital and Munich Re to lease Siemens Mireo trains to DB Regio in the beautiful city of Leipzig. We will continue to work very hard with our operator partners to fund more fleets in Germany with Infracapital over the next few years”.

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About Infracapital

Infracapital invests in, builds and manages a diverse range of essential infrastructure to meet the changing needs of society and support long-term economic growth. We take an active role in all of our investments, whether nascent or large, to fulfil their potential and ensure they are adaptable and resilient. Our approach creates value for our investors, as we target investments with the scope for stable and sustainable growth. Our portfolio companies work closely with the communities where they are based, to the benefit of all stakeholders. Infracapital is well positioned to deliver the significant investment required to help build the future. The founder-led team of experienced specialists has worked with more than 60 companies around Europe and has raised and managed over €9 billion of client capital across seven funds.  Infracapital is part of M&G Plc, an international savings and investments business, managing money for around 5 million retail customers and more than 800 institutional clients in 26 markets. Total assets under management are £332.8 billion (as at 30 June 2023)