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Allocean Maritime Investments launches UK market first in direct shipping investment


FCA-authorised shipping investment company Allocean Maritime Investments has teamed up with a major international tanker operator to launch what is believed to be the first direct commercial shipping assets investment within the UK legal and regulatory framework. 

Aimed at sophisticated, high net worth and professional investors looking for healthy returns that are de-correlated with the mainstream investment markets, the scheme is expected to produce a steady return of seven per cent pa after charges and tax (at 45 per cent) via the five-year fixed-rate charter, and an overall net IRR over the five-year term of nine to 16 per cent pa.
Allocean Maritime Investments managing director Braden Harris says: “Industrial transportation, particularly international shipping, can provide the yield investors have been searching for in the ongoing low-interest rate, uncertain equity market environment. The difficulty has been accessing these assets in a straightforward and transparent manner. We’re aiming to provide that access with Explorer Tanker LP and similar future launches.”
Allocean has engaged third party advisers such as Clifford Chance, PwC and Moore Stephens to present investors new to the asset class with management controls. 
The asset will be purchased on a sale and lease-back basis to its current owners who will continue to operate and employ it along its historic routes around the Mediterranean, Black Sea and European Continent.
“With the global economic recovery clearly underway and the relocation of oil refinery capacity eastwards, new routes are opening up, which is boosting the underlying demand for refined product transportation. This, in turn, is creating strong interest among both charterers and investors in this class of vessel, which is ideally positioned to add further value over the longer term,” says Harris.
Minimum investment is GBP30,000/USD50,000. It is intended that the vessel will be sold at the end of the charter period to realise investors’ capital. Allocean will offer a bargain matching function should investors want to sell their position early.

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