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Genting Hong Kong Confirms $900M Sale of Cruise Ship

By ,   January 9, 2020 ,   Cruise Industry

Genting Hong Kong Ltd (Hong Kong-listed company) confirmed the sale of the cruise liner MS Genting Dream for USD 900 million (~EUR 805 million) or 80% of its current market value (EUR 1,055 billion / USD 1,18 billion). The deal includes a 12-year leaseback of the vessel. The payment will be settled once the deal is completed on or around January 15, 2020. 

Genting Dream cruise ship

MS Genting Dream (first vessel of Dream Cruises China) was inaugurated in April 2017. The ship is one of the 3 existing cruise liners operated by Dream Cruises. According to a previous filing, as of June 30, the unaudited net asset value of the ship was approx US$862.5 million.

Genting has been seeking funds to finance its cruise business expansion. The company developed a 3-brand cruise portfolio with a focus on different market segments: Crystal Cruises for the ultra-luxury segment, Dream Cruises for the premium segment, and Star Cruises for the contemporary segment.

On August 6, 2019, Genting HK announced the sale of up to 35% of the equity interest in its Dream Cruises Holding for up to US$489 million.

In December 2019, the Hong Kong-listed company revealed that another of its units had agreed to sell and lease back an under-construction ship intended for Crystal Cruises. The liner, Crystal Endeavor, is currently being built in one of the German shipyards of Genting Hong Kong.