Lila Global, the shipowning affiliate of cash buyer GMS, has switched from buyer to seller and is being linked to the sale of two capesize bulkers.
Given the way capesize values have appreciated over the past year, the Dubai-based firm is likely to have made a profit in flipping the pair, if it is confirmed as the seller.
Brokers report that Lila’s 171,448-dwt P Melis (built 2003) has been sold for an undisclosed amount to Chinese buyers.
It was built at Hyundai Heavy Industries to the shipyard’s proprietary capesize design and is awaiting the installation of a ballast water treatment system this year.
Lila Global bought the ship in May last year for an undisclosed amount.
VesselsValue estimates that its market value has risen by 31% since then. It currently values the P Melis at $17.85m.
A second capesize with possible links to Lila Global, the 174,800-dwt Haiti (built 2004), has been reported by brokers as sold to China’s Jiangsu Steamship for $15m.
It was built at Shanghai Waigaoqiao in China to the shipyard’s own capesize design.
Cosco Shipping Bulk sold the vessel in early November last year for an undisclosed amount. Since then, VesselsValue estimates that its market value has appreciated by 33% to $16.87m.
Clarksons estimates the value of a 20-year-old, 176,000-dwt capesize at $16m.
Would-be buyers can expect to pay around $29.5m for a 15-year-old vessel of 180,000 dwt.
The shipbroker estimates one-year period rates at $25,000 per day.
Average capesize spot rates were estimated at $17,553 per day on Wednesday, up by $138 from the previous day. The assessment is the weighted average of rates across five key benchmark routes.
S&P Global’s database is the only resource that names Lila Global as the Haiti’s owner.
Others say it belongs to United Arab Emirates-based Kyra Global Marine, which manages many of Lila Global’s vessels.
The Haiti’s registered owner, Casselberry Shipping, has had close links to Lila Global in the past.
Casselberry is the same company that held registered ownership of a suezmax, the 159,100-dwt Lila Hong Kong (renamed Athenas, built 2003), that Lila Global flipped in March last year for $33m to Chinese operator Wealth Marine Ship Management.
Casselberry also owned another capesize, which has scrapped in Bangladesh on 6 February last year, according to demolition records. The 171,200-dwt Okra 1 (built 1999) was managed by Dubai-based Arka Global Marine.
It is not uncommon for cash buyers of vessels to recycle single-purpose shipowning entities after vessels change hands.
Chief executive Steve Kunzer told TradeWinds in mid-April that Lila Global is taking a breather from buying ships because of high bulker and tanker values.
The company’s fleet comprises more than 30 bulkers of all sizes, three stainless steel chemical tankers and two feedermax container ships. It has an average age of 16 years.
