Our investment objective
In order to achieve its investment objective, the Company will invest in a diversified Portfolio of vessels which will primarily be second-hand and which historically have demonstrated average yields in excess of the Company’s target dividend yield from time to time and are capable of being acquired at valuations that are expected to be below long-term average prices or depreciated replacement cost.
It is intended that the Company will hold vessels through SPV(s) which will be wholly owned and controlled by the Company and may be held through an intermediate holding company. The Company may acquire vessels through asset purchases (in which case the vessel will be transferred to an SPV) or through the acquisition of the relevant vessel owning SPV. The Company may, in exceptional circumstances, also invest in vessels through joint ventures with other parties or other non-wholly-owned structures, although, in such circumstances, the Company will seek, wherever possible, to have a controlling interest.
The Company may also acquire interests (including minority, majority and entire interests) in shipping businesses and companies (“Target Companies”) whose business includes the ownership of vessels provided that no single such investment in a Target Company will exceed (i) 30 per cent of Gross Asset Value in the case of a minority investment and (ii) 40 per cent of Gross Asset Value in the case of an investment that confers majority or entire ownership and where such investment exposure shall be reduced to a maximum of 30 per cent of Gross Asset Value within 18 months of completion of an acquisition of an investment interest that takes the Company’s total exposure to such investment to more than 30 per cent of Gross Asset Value. No single vessel in the relevant Target Company’s portfolio of vessels shall represent more than 20 per cent of Net Asset Value.
The Company will pursue a balanced employment strategy, comprising short term Charters (less than 6 months), medium term Charters (more than 6 months) and long-term Charters (greater than a year) which will benefit from staggered renewals, with a view to flattening the income curve.