Norwegian lessor Sole Shipping has boosted its fleet by quietly acquiring 21 vessels for an investment fund that was launched last year, including nearly a dozen tankers from Italy's Montanari Navigazione.

Chief executive Jan William Denstad has revealed that the company now has spent $150m in equity in its Sole Shipping Special Opportunities Fund II, which is the company's second fund.

Sole keeps a low profile on its investments, but the biggest deal in the second fund has been concluded with Montanari and involves 11 tankers.

These ships range from MR product carriers to a 2004-built suezmax. Montanari, which is listed with a fleet of 21 tankers, could not be reached for comment.

All of Sole’s projects are structured as sale-and-leaseback deals and, therefore, counterparty risk is the overriding concern.

Capacity for more

Last year, Sole also bought two LR1 tankers from Hafnia Tankers in a sale-and-leaseback deal and has concluded a similar contract with Lauritzen Kosan for four small LPG carriers.

Denstad said the second fund still has capacity for more deals and revealed that Sole is close to closing a deal for two large tankers. The fund has raised nearly $201m of committed capital.

“When we are fully invested in that fund, we will launch a third,” he said.

Denstad's Norwegian partners, John Hatleskog and Roy Mosvold, remain involved in the company's funds. But he stressed that Lillesand-based Sole is an international company with many investors based outside of Norway.

The second fund is domiciled in Jersey in the Channel Islands. But the local museum in Lillesand says Denstad’s family has lived in the centre of the town for nearly 200 years and has been involved in shipping for nearly as long.

Nearing vessel sale

Sole is also close to selling one of its vessels, the Chinese-built, 32,000-dwt bulker Fantholmen (built 2010). The ship, owned on a 50:50 basis with Arne Blystad, is estimated to be worth $8.25m to $9.7m, according to VesselsValue and Maritime Strategies International.

The bulker was purchased for $6m from compatriot Western Bulk Shipholding in June 2016, when it was named the Western Stavanger.

Sole was not equally lucky in another deal with Western Bulk. In February 2011, it bought the 56,000-dwt Western Oslo (built 2008) for $36.5m with a 10-year bareboat charter back to Western Bulk at a firm $10,500 per day. The charter was cancelled when Western Bulk Shipholding fell into liquidation in 2016, although its chartering arm survived the collapse.

This ship, now named Lyngholmen, is today likely worth $11.5m to $13.3m.

“We hope to get a profit on Fantholmen that can make up for some of our loss on Lyngholmen,” Denstad said.