Prostar Capital has sold its bulk liquid storage terminal facility, GTI Fujairah, located in the Port of Fujairah, to Mercantile & Maritime Group. GTI Fujairah is a high-performing facility with 14 tanks and 2.2 million barrels of storage capacity for black and white refined petroleum products. It has been consistently ranked as one of the leading operators in the port. The Port of Fujairah is a strategic energy trading port and one of the largest bunkering hubs in the world.
M&M, the buyer, is an independent commodity trading business that offers various services including trading, shipping, advisory, infrastructure asset management, field services, and storage and bunkering services. They are excited about acquiring this innovative terminal asset, which also champions best-practice environmental standards in oil storage. This acquisition will enhance their presence in the Middle East and provide them with increased access to both growing and established markets.
Prostar Capital did not disclose the financial terms of the sale, but they have expressed their satisfaction with the investment experience. They initially acquired the asset at a favorable EBITDA multiple and have seen a significant improvement in its exit EBITDA multiple. Prostar’s growth objectives for the terminal included recontracting it and securing high-quality, long-term customers. They focused on reducing operational expenses and making the terminal more automated and efficient.
Even though they have sold GTI Fujairah, Prostar Capital will still have a 40 percent ownership stake in the neighbouring bulk liquid storage facility, Fujairah Oil Terminal. FOT is the first terminal in the port to store ultra-low sulfur fuel oil and has significant growth potential. With its connection to the VLCC Jetty, which is used by large crude carriers, FOT is expected to experience significant growth in storage rates and demand for capacity.
Overall, this sale represents a successful investment for Prostar Capital, and they are confident that Mercantile & Maritime Group will continue the terminal’s growth. Prostar will also continue to focus on the growth and development of Fujairah Oil Terminal.
For more information visit www.prostarcapital.com
