Tufton Oceanic Assets has expanded its tanker portfolio with another product tanker acquisition.
The London-listed fund said the product tanker is being acquired at around 90% of depreciated replacement cost.
Tufton is paying $31.5m for the vessel, slightly higher compared to the product tanker it acquired at the end of last year. Completion of the acquisition is expected by early July.
“Following this acquisition and previously announced divestments and acquisitions, the company will be fully invested,” Tufton said in a release.
The ship will initially be employed in a leading product tanker pool where the current net unlevered yield is in excess of 25%. Tufton added it expects the yield to remain above 20% over the next one or two years, during which it would decide if a longer-term fixed-rate charter is more appropriate.
