MPC Capital launches niche boxship investment fund in Germany

The independent investment and asset management firm is launching MPC Container Ships AS, an investment vehicle focused on feeder vessels with between 1,000 TEUs and 3,000 TEUs of capacity, the company said in a statement.

   Independent investment and asset management firm MPC Capital AG is launching a new containership investment vehicle in Germany, the company said in a statement.
   The newly formed MPC Container Ships AS yesterday raised $100 million in equity from a private placement with international investors and family offices in the Norwegian capital market.
   The investment vehicle will focus primarily on small feeder vessels with between 1,000 TEUs and 3,000 TEUs of capacity, and MPC Capital subsidiaries Ahrenkiel Steamship and Contchart will offer technical and commercial ship management services for the new company’s fleet.
   “Based on the current pipeline exceeding 100 vessels, capital proceeds are expected to be fully deployed within 2017,” MPC Capital said of the new venture. “An initial fleet of attractive assets has already been secured.”
   Shares of MPC Container Ships AS will initially be registered on the Norwegian OTC list, but the company intends to list them shares on a “reputable” stock exchange some time this year.
   According to MPC Capital, the container shipping market is already seeing the first signs of a recovery after a disastrous 2016, with freight rates already surpassing 2016 levels and charter rates trending up in the first quarter of 2017.
   “Market analysts, Maritime Strategies International (MSI), projects a market-wide recovery, while highlighting that supply and demand dynamics for the small-size segment are particularly favorable as they provide insulation against downside risks,” the firm said. “Overcapacity in the container market has led to a historic downturn in charter rates and asset values. Analysts therefore see attractive investment opportunities in the market – a view shared by MPC Capital.”
   “The transaction marks a further milestone in the history of the MPC Group,” added MPC Capital CEO Ulf Holländer. “It shows our vital competence to structure innovative deals in the shipping business. And it underpins our ability to identify attractive investment opportunities in niche sectors that are ahead of markets and to connect investors to this strategy.”