Talis Capital, a London based Investment Advisor, completed 2013 with a shipping transaction: the acquisition of a 12,200dwt general cargo vessel, built in 2011. The vessel will operate in the Black, Mediterranean and Azov sea region, alongside the existing fleet. Full ship management services will be provided by INTRESCO LTD; a ship management company based in Vienna.
Vasile Foca, director and co-founder of Talis Capital said, “This is the third vessel acquisition of 2013, which has been an exciting year for the shipping portfolio. The existing vessels have been operating ahead of budget and we anticipate the larger tonnage of the latest vessel will serve to meet growing demand from Charterers in our markets. We continue to find opportunities with the specific characteristics that we require, at discounted prices. The tougher operating environment in shipping since the financial crises offer substantial opportunity for long term investors working with proven operators, targeting specific niches and geographies.”
Shipping is a sector the Talis Capital team has experience in, and has been actively monitoring for several years. While many investors now recognise the broader opportunity in shipping, Talis Capital has identified a niche sector of the market which can provide unlevered annualised yields above 15% and high levels of capital protection for investors.
This deal completed a successful 2013 for the London-based multi-family office. Further to advising on the acquisitions of two dry bulk carriers earlier in 2013, the latest transaction marks the beginning of a considerable expansion of the fleet advised by Talis Capital. Having identified a pipeline of acquisition opportunities, Talis Capital is raising investor commitments for Project Blueline, which intends to complete 4-6 vessel acquisitions in the first half of 2014. Subsequent acquisitions will be made later in the year, subject to attractive opportunities remaining within the niche sector.
Matus Maar, director and co-founder of Talis Capital added “the recent uptick in optimism for charter rates is well recognised by market participants, however we find the vessel supply conditions in our niche even more interesting. The fleet in these specific markets is aging, which combined with record scrapping levels and a limited newbuilding orderbook provides some key attractions to operating modern and fuel efficient vessels. Although comfortably profitable at current charter rates, the fleet would immediately benefit from any broader uplift in charter rates as our vessels are fixed on spot-basis, rather than time-charter agreements.”
Nikolay Ostapov, Managing Director and co-founder of INTRESCO Ltd (Ukraine) commented “we are pleased to strengthen the relationship with Talis Capital, having known the team for many years. The latest acquisition enhances the track record of our partnership, and we look forward to working with Talis Capital in the maritime sector over the coming years. Talis Capital has proven to be a very reliable partner and with our technical expertise and years of shipping experience, we are confident of delivering attractive returns for investors.”
Maksym Khaulin, Deputy Director and co-founder of INTRESCO Ltd (Ukraine) added “I began my career in the shipping industry in 1994 and have worked alongside many partners in my time, however I consider the Talis Capital team friends as well as colleagues. We operate as one seamless team and I believe this element is very important for success in the shipping business. Our team look forward to working with new and existing investors, who see the exciting opportunity in our niche sector of shipping.”
Talis Capital, January 23, 2014; Image: Wikimedia