Tufton Oceanic buys two cargo ships for $13.5m

Two new vessels for Tufton Oceanic Assets : SHIP

Tufton Oceanic buys two cargo ships for $13.5m – Tufton Oceanic (SHIP) is growing its vessel fleet to 14 after striking a deal to acquire two general cargo ships for $13.5m. They will be the first investments made from the proceeds of a placing announced in March, where $50m was raised. Click here to read more on this story.

SHIP buys its vessels in the second-hand market with an average tenor of 5.5 years. The acquired vessels will be bareboat (no crew provided to the lessor) chartered to a leading general cargo shipping operator. The yield on these vessels exceeds the targets expressed in the Company’s prospectus dated 25 September 2018.

About SHIP

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 two cargo ships for $13.5m

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