Leasing firm Dubai Aerospace Enterprise (DAE) has agreed to sell StandardAero, an engine maintenance, repair and overhaul (MRO) company, to an affiliate of private equity firm Veritas Capital, it said in a statement on Tuesday.

Dubai's DAE did not disclose the value for the deal but said it will use the proceeds from the sale to expand the rest of its operations, including to "aggressively acquire" more aircraft to expand it leasing business.

With a current net book value of $3.7 billion, DAE said it will refocus its efforts in building an aerospace footprint from Dubai.

Scottsdale, Arizona-based StandardAero provides engine MRO and nose-to-tail services that include airframe and interior refurbishment, and paint for commercial and military aircraft.

The firm will be sold to Veritas Capital Fund V, the statement said.

Reuters in February reported DAE was exploring the sale of StandardAero and sources said the deal would be valued at over $1.8 billion.

DAE acquired the firm in 2007, soon after it was set up with the ambition to become one of the world's largest aircraft lessor but was forced to cancel plane orders during the global credit crunch and Dubai's debt crisis.

It had previously attempted to sell StandardAero without success. It was in talks with London-headquartered BBA Aviation over a merger reported by media at the time to be worth 2.7 billion pounds. Discussions were ended in September 2013.

It relied on revenue from StandardAero, which has partly helped its recovery. DAE in 2014 made a net profit of 586 million dirhams, up 43 per cent from the prior year.

Meanwhile its equity is spread out around major Dubai government-related entities. Majority shareholder Investment Corp of Dubai (ICD) said in December it expected to complete a transaction to increase its stake in DAE.

Its other shareholders included Istithmar World - an investment arm of Dubai World, Emaar Properties, Dubai Silicon Oasis Authority and Dubai International Capital. - Reuters