UK shipping fund Tufton Oceanic Assets is re-investing sales cash into the acquisition of two handysize bulkers.
The London-listed company said the combined price for the unnamed ships is $41.2m.
Tufton added that the bulkers are being bought at below depreciated replacement cost and are fuel efficient compared with their peer group.
The handysizes comes with fixed-rate time charters for a year, giving an annual net yield of 25%.
They will be dry docked when these deals end, so that energy saving devices can be fitted.
Tufton said in July that these retrofits will increase fuel efficiency by about 10% and boost the internal rate of return to more than 15%.
The unspecified devices "will increasingly be fitted on the company's vessels in 2022," Tufton added.
Boxship proceeds recycled
The acquisitions are being funded by proceeds from the sale of a large feeder containership in July, as well as cash on hand.
Brokers report this vessel as the 2,602-teu Cosmos (built 2006), which went to Mediterranean Shipping Co for $33m.
Tufton said the deals mean the company is now fully invested again following an oversubscribed $12.4m tap issue of shares in August.
The shipping fund said it had sold all the remaining 10.53m shares authorised by shareholders last year.
The bulker buys "demonstrate the company's commitment to ESG [environmental, social, and corporate governance] and capital reallocation," according to the company.
"The latter is increasingly relevant given absolute and relative movements across and within the main shipping markets since third quarter 2020," the shipowner added.
