Tufton Assets agreed to acquire two Handysize bulkers for a total of $33 million, the company announced on February 11.
The Japanese-built vessels were purchased at approximately 85 per cent of their depreciated replacement cost.
The acquisitions align with the strategy of the company to deploy capital into second-hand vessels that deliver yields. The company's board approved the purchase after determining that the expected returns exceeded the required threshold as implied by a mid-term strategy review.
Following the acquisition, one vessel is expected by Tufton to begin a fixed-rate charter for 11 to 13 months with a leading commodity trader. The company stated this charter is expected to provide a net yield of approximately 12 per cent.
The second vessel will commence an index-linked time charter with another commodity trader, according to the company. Tufton said the yield for this vessel is expected to be greater than 12 per cent based on a positive market outlook for the bulker sector.
Both vessels are positioned in the top quartile of fuel efficiency within their specific market segment, Tufton remarked.
