500 billion yen fund to invest in LNG carriers
Time：2014-12-11
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The fund will be managed by Anchor Ship Partners, an independent fund operator. The Tokyo-based company has already invested about 330 billion yen through two ship investment funds. Its vessels are currently used by such shipping companies as Nippon Yusen and Kawasaki Kisen Kaisha.
The new fund will ask such investors as city and regional banks to put up money. It will sign leasing contracts with shipping companies for the large ships that it owns, with those leasing fees to be distributed to investors as dividends. Anchor Ship Partners aims for an annual average return of more than 5%, just like its other funds.
The country’s big shipping companies are expanding their fleets on expectations that Japan’s shale gas imports will grow. Nippon Yusen intends to boost its fleet of LNG carriers by more than 30% to at least 100 ships by 2019. Mitsui O.S.K. Lines is also moving to add to its fleet of LNG carriers.
The new fund will also purchase containerships. Kawasaki Kisen plans to gradually replace its containerships with larger ones, with a target of operating 10 large containerships by 2018.
Bigger ships are more fuel efficient but also carry hefty price tags. A containership costs 10 billion yen while an LNG carrier’s price exceeds 20 billion yen. Anchor Ship Partners believes that its new fund will enjoy strong demand since shipping companies do not have the cash to carry out all the necessary investment on their own.
Ship investment funds are becoming more common. Sumitomo Mitsui Trust Bank has joined forces with a large French financial company to create a specialized fund that will begin making ship loans next month. Blackstone Group and other U.S. investment funds are also stepping up efforts in this field.