Sale and Leaseback Deal for Genting Dream

Genting Dream in Hong Kong

Genting Hong Kong has announced that it has entered into a sale and leaseback agreement for the 2016-built Genting Dream.

The company has sold the ship for $900 million or 80 per cent of the closing market value (whatever is lower), in a deal involving three Chinese banks. The ship was recently appraised at $1,180,000,000 according to a filing from Genting.

The agreement also includes a bareboat charter agreement to lease the ship back to Genting for 12 years.

Genting said in a filing that the agreement would provide working capital at reasonable terms that will help it finance its cruise expansion and newbuild program at MV Werften. 

The company will purchase the ship back once the 12-year charter period has ended.

Of note, Genting said the net profit attributable to the Genting Dream in 2017 was $23,010,000 and in 2018, $19,367,000

Earlier this year, Genting also sold a 35 per cent stake in Dream Cruises.

Genting Hong Kong Sells Stake in Dream Cruises

World Dream

Genting Hong Kong announced that it has reached a deal to sell a 35 per cent stake in Dream Cruises to Canada’s TPG Darting, which is owned by TPG Capital Asia and Growth Funds.

The company said the deal would strengthen its balance sheet as well as its ability to continue to expand its fleet in the cruise industry.

According to the 2019 Cruise Industry News Annual Report, Dream Cruises has 8,800 berths in service with a market capacity of 528,000 guests.

“The Disposal would also reduce the Group’s financial burden in meeting future funding requirements in relation to Dream Cruises’ business,” the company said. “It is intended that the sale proceeds for the Disposal will be used as general working capital and capital expenditure for the Group in relation to the construction of (the Global-class ships) and/or to fund new investments of the Group should suitable opportunities arise.”

According to a Genting statement, the transaction was valued at $488,645,875. Genting also noted that Dream has a current three-ship fleet, the Genting Dream, World Dream and Explorer Dream. In addition, is a contract to build a Global-class ship at MV Werften.

“It also expects to enter into the Global II Shipbuilding Contract in relation to the construction of Global II with MV Werften,” the company said, in a prepared statement.

The agreement also noted options third and fourth Global-class ships.

AD Associates Signs on for Crystal Diamond Class Newbuilds

Crystal Diamond Class

AD Associates has announced their involvement with Crystal Cruises’ new Diamond-class ships.

The Crystal Diamond represents the first ocean-going, newbuild vessel for Crystal Cruises since 2003 and is scheduled to join the luxury fleet in 2022.

The luxury ships will measure approximately 67,000 gross tons and accommodate around 800 guests, with luxury design elements and exceptional amenities in line with Crystal Cruises’ fleet.

A long-standing relationship with Crystal Cruises’ stretching across both newbuilds and refurbishments, positioned London based AD perfectly to lead the initial planning, feasibility studies and concept design, the company said, while also working closely with Crystal Cruises, Genting Hong Kong and MV Werften.

Chris Finch, CEO at AD, said: “As always, we are committed to ensuring we provide unparalleled service to our clients and we are honoured to have been selected to design again for Crystal Cruises.”