SFL acquires for $365m newbuild boxship pair and VLAC | Container news

The New-York listed shipowner SFL Corporation has agreed to acquire two container vessels and one very large ammonia carrier for an aggregate purchase price of around $365m in combination with long-term charters to a liner company and commodities company.

As informed, the company is buying a pair of 8,800 teu container vessels with scheduled delivery in 2027 and one 93,000 cbm dual-fuel very large ammonia carrier (VLAC) with scheduled delivery in 2028.

SFL has agreed minimum 8-year time charters to a liner company from delivery for the two container vessels. The charters may be extended up to another four years, and will have purchase options at the end of year 8, 10 and 12, including a profit share feature.

The VLAC has been chartered out on time charter basis for a minimum of 5 years from delivery to a company in the commodities industry, and may be extended up to another two years. In addition, the charterer will also have the option to develop a sale of the vessel during the last two years of the fixed period, subject to a profit share mechanism with SFL.

These charters will add a minimum of around $333m to SFL’s fixed-rate charter backlog, the company said, which may become higher if extension options are declared.

Ole B. Hjertaker, chief executive officer of SFL Management AS, said in a comment: “We are pleased to continue building the asset portfolio, combining newbuilds with early delivery and charters to existing high-quality counterparties. With the acquisitions and new charters announced so far this year, we have added more than $1.6 billion to our fixed rate charter backlog.”