New Shore Invest launches a new shipfinance platform
New Shore Invest (new-shore-invest.de) launches a new shipfinance platform that offers equity based limited partnership shares to retail investors. Seed capital for the new venture comes from NorthCape Capital in Oslo.
The German KG model is considered dead. Too many investors lost their money during the crisis after 2008. A billion-euro market and important source of equity for ship owners vanished in just a short period of time. New Shore Invest aims to revive and digitalize that market. “There is a market among investors as well as appetite from ship owners for fresh equity”, says Hanno Tamminga, one of the founders of New Shore Invest.
With NorthCape Capital as early investor and believer, New Shore found a strong strategic and financial partner, who have already arranged and structured just under US$ 18 billions of lease financing in the maritime and aviation sector since its foundation in 2012. “With the investment in New Shore we aim to diversify our service portfolio and strengthen our presence in the German market”, says Peter D. Knudsen, Managing Partner of NorthCape Capital.
The principle is the same as the “old” KG model: New Shore facilitates and structures limited partnership shares (“KG shares”) of single ship companies. What is new with New Shore is that for every share investors get a Token, that is being generated on Ethereum blockchain and held in the investor’s wallet. The Token can only be acquired online. One Token represents one euro of share capital including all its rights and obligations according to the articles of association of the single ship companies.
The so called “Security Token Offering” is very cost efficient, secure and fast and the Token can be traded and transferred in a secondary market, like a stock. The whole signing process can be done online and within minutes and is free of charge for the investor. As equity investor, the investor is entitled to dividends and fully participates in profits in case the vessel is being sold. New Shore Invest aims at projects that generate an IRR of at least 7%, which under German tonnage tax are basically tax free for the investor. Investments start at EUR 1,000 and are hence aiming at the mass investor market, like stock and bond investors. “Because shipping is a risky investment, we had to break down the investment tickets to min. EUR 1,000 in order for people being able to diversify their portfolio and open up the market”, says Richard Heuser, one of the founding partners of New Shore Invest. In order to deal with a large amount of investors, New Shore developed a powerful administration software. The investor administration is part of New Shore’s service and through the online investor portal, investors can track their investments and participate online in general meetings and pass shareholder resolutions without the necessity of a physical attendance.
A first project is in the pipeline already and will be launched in Germany in Q1 2020. The focus is in the beginning on “4.0 shipping projects”, for example green newbuildings, LNG propulsion etc. “A green and innovative story is what we need in order to attract retail investors to shipping again”, Hannes Hollaender, third founding partner of New Shore, says. “The advantage of online marketing is, that we can reach out to hundreds of thousands of potential investors”, Heuser says. New Shore Invest hopes to offer retail investors a good alternative to real estate or stock markets and to fill a painful gap of equity for the shipowners.
Source: New Shore Invest