SFL acquires newbuild VLCC from Landbridge

SFL Corporation has acquired a newly-built 308,000-dwt VLCC from Landbridge Group under a resale deal, and bareboat charter it back for seven years.

The VLCC will be delivered from Dalian Shipbuilding Industry (DSIC) in the second quarter.

SFL is forking out $65m for the resale VLCC, a price considered significantly below current broker estimates for newbuild VLCC resales.

“Amidst the recent market volatility, we see attractive investment opportunities in our core markets. Some of the best investments can be made when the general market is less competitive, and staying focused and able to execute on accretive growth opportunities through the market cycles is a key differentiating factor,” said Ole B. Hjertaker, ceo of SFL Management.

The charterer Landbridge Group has also secured for its affiliate a three-year sub-charter for the VLCC to an oil major.

There will be purchase options for the Landbridge Group during the charter period, with the first option after three years and a purchase obligation at the end of the charter.

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