Varde Partners to acquire VLCC from Landbridge

Alternative investment firm Varde Partners is set to acquire a very large crude carrier (VLCC) from Landbridge, a Hong Kong-based subsidiary of Chinese industrial company Landbridge Group.

Under the terms of the contract, Varde will buy the 308,000dwt Landbridge Prosperity, a modern, fuel-efficient tanker built in 2016.

Landbridge CEO Vincent Lai said: “We are pleased to begin a financing relationship with Värde, a firm with diverse expertise and a long history in shipping. We look forward to developing further areas of collaboration with Värde and Pareto.

“Our modern fleet of VLCCs are among the most fuel-efficient VLCCs on the water and complement our port operations and activities in the oil and gas industry.

“The transaction is a part of our scrubber retrofitting programme for the whole fleet, which cements our pioneering position in response to the IMO 2020 convention.”

The deal is being arranged by Pareto Securities.

“Our modern fleet of VLCCs are among the most fuel-efficient VLCCs on the water and complement our port operations and activities in the oil and gas industry.”

Landbridge will continue to operate the vessel under a bareboat charter, before re-acquiring the vessel after completion of the charter period.

Värde Partners managing director Stephen Seymour said: “This transaction underscores our objective to become a leading provider of alternative finance to the sector by building long-term partnerships with reputable maritime companies and shipowners.”

The parties have not disclosed the financial terms of the transaction.

China-based Landbridge Group specialises in port infrastructure and logistics, oil and gas, shipping, and petrochemical industries. It also operates Landbridge Port in China and Port of Darwin in Australia under a 99-year lease and is developing Isla Margarita Port in Panama.