Tufton Oceanic buys $28.3m vessel – Tufton Oceanic (SHIP) has reached an agreement to acquire a containership for $28.6m. The new ship will take the company’s fleet size to 15 vessels.
The new ship has a time charter of approximately 5.5 years to a major container line and SHIP says it is going to invest $4.7m to upgrade the in accordance with this charter.
SHIP says that the yield from the new vessel exceeds the targets expressed in its prospectus dated 25 September 2018.
This is the third investment made from the proceeds of the placing announced on 11 March 2019 and, following completion of this acquisition and taking account of the required investment to upgrade the vessel, the company will have invested approximately 85% of the net proceeds from the placing.
Launched in December 2017, SHIP aims to provide investors with an attractive level of regular and growing income and capital returns through investing in a diversified portfolio of second-hand commercial sea-going vessels. The company will make investments through one or more underlying special purpose vehicles (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.
SHIP: Tufton Oceanic buys $28.3m vessel