Tufton Oceanic Assets has announced that it has agreed to acquire two product tankers for a total of $36m. These acquisitions will be the third and fourth investments made from the c share proceeds announced on 11 October 2018 and will take the Company’s fleet to ten vessels. Limited information is provided in the announcement, but the company says that the yield is in line with the targets expressed in the company’s c share prospectus.
Both vessels have two to three-year charters
Tufton Oceanic Assets says that each vessel will have a time charter of two to three years to a major commodity trading and logistics company.
C Share Issue
The C share issue on 11 October 2018 raised US$78,400,000. The C shares trade under the ticker on SHPC on the London stock exchange. The Company has invested approximately 75% of the C Share net proceeds. It says that its investment manager continues to identify an attractive pipeline of opportunities across a range of the Company’s target sectors.
About Tufton Oceanic Assets
Tufton Oceanic Assets aims to provide investors with an attractive level of regular and growing income and capital returns through investing in a diversified portfolio of secondhand commercial sea-going vessels. The company will make investments through one or more underlying SPVs.
The company is targeting an initial dividend yield of 5% during the first 12 months following admission rising to a target dividend yield of 7% thereafter. The dividend is expected to grow modestly over the long term. The company will target an IRR of 12% per annum (net of expenses and fees) on a NAV basis on the issue price over the long term.
You can access the fund’s website here