LONDON, UK: The Board of Tufton Oceanic Assets Limited has agreed to acquire two handysize bulker vessels for a total consideration of $41.2 million.
The bulker vessels are being acquired at below depreciated replacement cost (DRC) and are fuel efficient versus their peer group.
The vessels have fixed rate time charters for approximately one year producing an annual net yield (after fees and capex accrual) of 25%. They will be drydocked upon completion of these charters, and will then be fitted with energy saving devices (ESDs).
As announced in July, we expect fuel efficiency to increase by approximately 10% and the ESDs to produce net IRRs of over 15%. ESDs will increasingly be fitted on the Company’s vessels in 2022.
The vessels are being acquired with the proceeds of the sale of the Containership Citra announced in late July and cash on hand. Following these acquisitions, the Company is fully invested.
These transactions, together with the divestments announced in May and July, demonstrate the Company’s commitment to ESG and capital re-allocation. The latter is increasingly relevant given absolute and relative movements across and within the main shipping markets since 3Q20.
The Investment Manager continues to identify an attractive pipeline of opportunities across a range of the Company’s target sectors.