It is no coincidence that the first KG (limited partnership) fund to be launched by a leading German financier in several years will be in the multipurpose (MPP) sector.
The move by Oltmann Gruppe reflects the sector's improving outlook and growing confidence in retail investors.
The Leer-based ship investor will issue a mutual fund attached to the 5,000-dwt Bootes (built 2018), the second in a series of four MPP vessels operated by Briese Chartering. The vessel is currently used in the European shortsea trade moving wind-turbine blades.
The crisis is over. And we have a nice project with a good partner
Oltmann spokesperson Manfred Riemann confirms the new fund is the first for several years and is being launched in the belief that the timing is right.
Oltmann and Briese Schiffahrt together have worked on 130 projects over 30 years, but the projects stopped around a decade ago with the onset of the shipping crisis.
“The crisis is over,” says Riemann. “And we have a nice project with a good partner.”
The plan is to launch a second fund linked with a second ship in the coming months.
The open-top eco generation vessels operate for Briese Chartering, which ordered them from Zhejiang Zengzhou Shipbuilding. The first in the series, the Porthos (built 2018), was delivered in February.
Oltmann is selling the fund to investors using the vessels green credentials. The company points out they are designed to consume 30% less fuel than older comparable ships and will have more crane and cargo capacity. The design places a wheelhouse at the front of the vessel to enable high and large cargoes to be loaded without impairing visibility.
In its first year, the Bootes will obtain a charter rate of $4,567 (€4,000) per day.
The fund will raise €4.9m, out of a total investment of €8.7m, with the remainder coming from bank finance.
An average return of around 8.16% per year after tax is forecast.
