John Fredriksen’s SFL Corporation has struck a deal with China Development Bank Financial Leasing (CDB Leasing) to sell its seven handysize dry bulk vessels for around $100m.

The vessels, ranging between 32,000-34,000 DWT, will deliver before year-end, and SFL plans to invest the net cash proceeds of over $50m in new assets. The ships have been employed in the spot market for the last five years due to limited long-term chartering opportunities in the handy segment, SFL said.

Ole B. Hjertaker, CEO of SFL Management, commented: “The seven small bulkers were redelivered from the initial charters when the market was soft, and instead of divesting the vessels at the time we have waited for improved market conditions. Asset values in the segment are up 75% this year, and we believe this is a good time for a strategic sale of these vessels.”

Hjertaker added that the company’s primary business strategy is to own and charter its vessels long-term, having added more than $850m to its charter backlog in 2021.

Earlier this month, SFL acquired three 2019-built Suezmax tankers in combination with long-term time charters.