Shanghai financial start-up Front Line Capital is making its debut as a shipowner, buying two supramaxes, including one from Hong Kong’s Wah Kwong Maritime Transport.
Wah Kwong officials confirm only that private and confidential discussions have been held with several potential buyers for the Chengxi-built, 53,500-dwt Sabrina Venture (built 2010), including “a buyer based in Shanghai”.
Market sources say the ship is going to Su Ning-led Front Line Capital.
Some brokers are reporting the price at a surprising $10.5m, a figure TradeWinds understands is too high.
The obvious comparison is with the sistership CMB Coralie (built 2009), which Bocimar of Belgium sold earlier this month, reportedly to an undisclosed Greek buyer for $9.3m. TradeWinds understands the actual buyer is a Chinese company based in Shandong province that paid $9.18m.
The Sabrina Venture sale is expected to close by mid-October for delivery near the end of the year.
Market sources say one more supramax from another undisclosed seller is set to join the vessel in Front Line Capital’s initial fleet. They expect the new owner to follow up its first pair with similar transactions.
Su’s Front Line Capital is a new, all-Chinese private equity venture with no ships until now, and no connection to Norwegian John Fredriksen’s Frontline.
TradeWinds reported in May that Su, former head of ship leasing at China Merchants Bank Financial Leasing, had set up the company with partners late last year and begun inspecting ships. It has been targeting Chinese-built secondhand supramax, panamax and kamsarmax tonnage of about 10 years’ vintage.
The company plans to charter out its first few vessels long term but to build up a self-operated fleet of around 10 ships in 2018.
Su is also head of his own Fortune Wave Shipping.
As for Wah Kwong, after an absence of three years from the sale-and-purchase market, the Sabrina Chao-controlled company has been busy this year, selling up to three Chengxi-built ultramaxes to Greek owner Common Progress.
In April, the 63,300-dwt Dominique Venture (renamed Common Galaxy, built 2015) and Pilatus Venture (built 2016) went for a reported $21.7m and $23.3m, respectively, with charters attached. The following month, Common Progress paid a reported $23m for the sistership Geneva Venture (renamed Common Horizon, built 2016).
Wah Kwong reportedly ordered these ships for $25m each in 2013. They were probably worth less than $15m early in 2016.
Wah Kwong has a mixed fleet with 17 bulkers and six tankers, including three more Chengxi-built supramaxes of similar vintage to the Sabrina Venture.
In May, it sold the Dalian-built, 297,000-dwt tanker Dalian Venture (built 2011) to UK-based Zodiac Maritime for $53.5m.
