SINGAPORE—Singapore Technologies Engineering is looking to grow its passenger-to-freighter (P2F) business as demand for cargo capacity increases.

In August, ST Engineering began a 50:50 JV with state-owned investment company Temasek focused on P2Fs. Within the JV, called Juniper Aviation Investments, ST Engineering provides MRO for the aircraft and is the asset and lease manager.

Talking to ATW ahead of the air show, ST Engineering Commercial Aerospace president Jeffrey Lam said the company was looking to double the value of its assets under management to $2 billion by 2026.

Juniper plans to build a portfolio of some 20-25 freighters valued at $600 million within five years, he said. It includes the Airbus A320, A321 and A330 as well as the Boeing 767.

The company also leases engines for which it has overhaul and repair capabilities, including the CFM56 and the LEAP-1B.

“We certainly expect [the leasing business] to be profitable from day one as a portfolio. Aircraft leasing is a form of financial structuring, in terms of how you depreciate the aircraft and the residual value. Ultimately, you can work it out,” Lam said.

“We can do the MRO and conversion before leasing, so it's doubly interesting compared to a traditional lessor.”