COSTAMARE Inc, the Greek owner of 60 containerships, has acquired five more for US$190 million under its new joint venture with investor York Capital Management.
The purchases include two new vessels built in Asia with a capacity of 9,000 TEU, costing $81 million apiece and due for delivery in 2015, according to Athens-based Costamare's chief financial officer Gregory Zikos. The other three ships are smaller and second-hand.
"We have close to half-a-billion dollars of equity to invest within two years, which is substantial capital for container shipping," Mr Zikos said adding that it "doesn't mean that we will rush into transactions."
Costamare's joint venture with York Capital is part of a wider trend of ship owners joining with private-equity companies to invest in vessels. As the industry has entered its sixth year of crisis amid overcapacity and low freight and charter rates, many European banks such as Commerzbank AG and HSH Nordbank AG are exiting or cutting down ship finance, according to a report from Athen's Daily Kathimerini.
Costamare, which has been listed on the New York Stock Exchange since 2010, charters ships to container lines such as Hapag-Lloyd AG, AP Moeller-Maersk A/S and CMA CGM.
"What's unique about our venture is that we invest up to 49 per cent of equity and that's what we did at the latest transactions," said Mr Zikos. "From what I have seen in the industry, ship owners usually invest five to 10 per cent of the equity, while private equity firms provide the rest." Costamare's minimum investment in purchases through the joint venture with York Capital will be 25 per cent under the terms of their deal.
The order book in the container industry is 21 per cent of the total container fleet in the water today and mainly consists of larger vessels starting at a capacity of 8,000 TEU, said Mr Zikos. "As these big ships get delivered, liner companies around the world may adjust their capacity with regard to medium and smaller-sized vessels, bearing in mind their trade lanes and business models."
The delivery of big ships such as the 18,000-TEU vessels delivered to Maersk Line is causing container carriers to dispose of smaller ones to rein in supply and avoid further increasing capacity in the market.
MARKETS
02 October 2013 - 21:46
Costamare buys five containerships for US$190 million with York JV
COSTAMARE Inc, the Greek owner of 60 containerships, has acquired five more for US$190 million under its new joint venture with investor York Capital Management.
MARKETS
02 October 2013 - 21:46
Costamare buys five containerships for US$190 million with York JV
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