United Kingdom-based closed-ended investment company Tufton Oceanic (SHIP) has reached an agreement to acquire a container ship 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.