Mitsubishi UFJ Lease & Finance Co. Ltd. signed a memorandum of understanding with U.S.-based Greenbrier Cos. Inc. to form an asset management service entity and expand their existing railcar business in North America, in transactions valued at more than US$1 billion.

The Japanese company is looking to build a railcar leasing platform that can provide services over the life cycle of a railcar, it said in an April 6 statement.

Under the terms of the agreement, the parties will form an asset management service joint venture entity to manage and administer the Mitsubishi UFJ Lease railcar fleet. The entity will be 50%-owned by each company. The U.S. company is a builder and supplier of railcar equipment and services.

Mitsubishi UFJ Lease also committed to buying railcars from Greenbrier, including 6,000 new railcars through 2020. Mitsubishi UFJ Lease will also complement its portfolio growth through lease syndications and used equipment owned and originated by Greenbrier.