A rare newcomer to the Norwegian shipping community, Sterling Shipping, has bought its first vessel, a 2013-built kamsarmax bulker from BW Dry Cargo, and is looking to buy more.
The deal was concluded last October, but details of who the buyer is have only now emerged.
Two 32-year-old Norwegians, Christopher Fjeld and Markus Reitan, are behind the company and are both based in Malta.
Fjeld confirmed the SPP Shipbuilding-constructed, 81,000-dwt BW Hazel (built 2013) was bought for $21m.
He considered the investment attractive as the ship had just passed a survey, and so was not in a need of dry-docking, which can cost up to $2m.
VesselsValue estimates the bulker now is worth $18.5m.
The new company is not related to London shipbroker Sterling Shipping Services.
Charter-back deal
The ship, which has been renamed Sterling Svea, has been taken back on charter by BW Dry Cargo for a minimum of 24 months at an undisclosed rate.
BW Dry Cargo has relet the vessel to Glencore, which is trading the ship carrying grain.
Brokers in Oslo appear to know little about the deal or the new company.
But TradeWinds understands that the deal was brokered by Fearnleys, which was confirmed by global sale-and-purchase chief Soren Greve.
He was reluctant to give further more about the new company.
The Sterling Svea is technically managed by the OSM group.
Sterling Shipping is already looking to buy more ships and is inspecting vessels.
Fjeld said: “We are comfortable with the kamsarmax segment."
Sterling Shipping wants to establish itself as a lean shipping company targeting three-year-old to 10-year-old bulkers “at current depressed asset values” that generate positive cash flow.
Acquisitions will be funded by a combination of equity and loans, Fjeld said.
The two partners are new to shipping, having previously been involved in real estate and industrial projects, mainly in Sweden.
For the past couple of years, they have both been based in Malta.
Fjeld claimed the island state offers better conditions for setting up new business than Norway, and noted that several Norwegians have moved there in the past year.
Fjeld said shipping was in his family's blood.
“My grandfather is an old sailor who went out as a 14-year-old boy and worked himself up in the old way. I believe he enjoyed best working for Olsen & Ugelstad.”
Oslo-based Olsen & Ugelstad owned more than 30 ships in the 1960s but collapsed in the 1970s' shipping crisis.
