Enterprise Investment Partners (EIP) is launching the newEIS-qualifying company London Shipping Ltd to take advantage of improvingshipping markets.
London Shipping is looking to raise £5m in equity to buy whatit says will be a ten to 20 years old handymax vessel which will also befinanced by a maximum 65% of debt to value. It is seeking minimum investmentsof £10,000 in an offer closing by 31 March 2014.
London Shipping has contracted Alan Bekhor-led owner andoperator British Marine to acquire and manage its vessel.
EIP and London Shipping are targeting a medium case returnof £1.54 for each £1 invested after three and half years when the ship will besold. The returns, which include 70p net of EIS income tax relief, would beequivalent to a 22% internal rate of return.
EIS-qualifying companies allow each investor income taxrelief of 30% of the value of their investment up to a maximum of £1m per year,as well as various exemptions from capital gains and inheritance taxes.
UK-based British Marine, which has just agreed a dry bulkshipping joint venture with Geneva-based traders Reuben Brothers, operates andmanages a fleet of owned and chartered-in supramax, handymax and panamaxvessels. The company lists seven owned 45,000-60,000-dwt ships.
EIP says its principals have raised more than £500m underthe EIS, Venture Capital Trust and other tax-efficient structures over the last20 years, gaining experience particularly in the leisure, media, commercialproperty and renewable energy sectors.
