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(Alliance News) - Tufton Oceanic Assets Ltd on Thursday said it has agreed to buy two ships, a product tanker and a handysize bulker, for a total of USD54.5 million to reallocate capital and improve the fuel efficiency of its portfolio.
Tufton is a London-based investor in second-hand commercial sea-going vessels.
It purchased the product tanker for USD30.9 million, at around 85% of depreciated replacement cost. The tanker has a fixed rate time charter of 12 to 24 months producing a net yield over 8%.
"The investment manager believes that positive drivers for both demand recovery and very low supply growth will significantly increase charter rates and values in the medium term," Tufton said.
The handysize bulker was acquired for USD23.6 million, also below depreciated replacement cost. It has a fixed rate time charter of 18 to 24 months producing a net yield over 15%.
Both vessels are "in the top quartile" of fuel efficiency and will be evaluated for further improvement, including the retrofit of energy-saving devices, Tufton said.
"The acquisitions, together with announced divestments, demonstrate the company's commitment to environmental, social and governance and capital re-allocation," the maritime assets investor asserted.
Shares in Tufton Oceanic Assets were remained flat at USD1.38 on Thursday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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