The acquisition of UBC Hamburg (previously named Shanghai Pearl) expands the portfolio of the second compartment, Pelagic Yield Fund, to four vessels. The Handysize Bulk Carrier was built in 2011 at Hyundai Mipo Dockyard in South Korea and has a capacity of 37,000 dwt. The vessel will be reflagged under Cyprus and will trade in the UBC Pool.
Pelagic Partners’ aim is to increase the exposure on the Bulker market in general and Handysize segment in specific. Therefore, UBC Hamburg is the first out of a few more that will be purchased when the right assets are found. Given the market fundamentals and age profile of the Handysize fleet around the world, we believe there is further upside on asset price and healthy returns over the next 2-3 years.
Pelagic Yield Fund
Pelagic Yield fund was established in March 2022 and is currently controlling USD 80 million AUM indicating that it follows the successful strategy of Pelagic Fund I. The new Yield Fund combines the diversification in asset types and employment with relatively low leverage. Its strategy comprises fixing half of the vessels on charter contracts to enhance cashflow visibility and generate annual yield, while leaving sufficient exposure to the spot market and the anticipated upswing.