ContainersEuropeFinance and Insurance

MPC Capital sells eight boxships for $398m

MPC Maritime Investments, a subsidiary of MPC Capital, has arranged the sale of a portfolio of eight containerships for a price of around $398m. The buyer is an unnamed Asian finance syndicate which intends to continue to use the ships for charter operations.

Two of the eight vessels have already been handed over to their new owners. The handover of the remaining six ships is scheduled to take place during the next weeks.

The ships that make up the M-Star fleet went into service between 2004 and 2007. To finance their purchase, MPC Capital had raised equity capital of around EUR175m predominantly among private investors. The sale that has now been agreed means the investors realise an average annual post-tax return of 6% on their employed capital. The IRR (internal rate of return) is up to 7.7%, and the total return of capital as high as 195%.

“We are very proud that we have successfully completed a transaction of this magnitude in this difficult industry climate,” remarked Constantin Baack, management board member of MPC Capital.

“We have achieved this solid return on our investors’ employed capital not least by tightly dovetailing specialist shipping knowledge with financial expertise in our investment team.”

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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