SINGAPORE - Cruise ship operator Genting Hong Kong has entered into a sale and purchase agreement to acquire three cruise shipbuilding yards in Germany for a total of €230.6 million (S$351.3 million).

In a filing with the Singapore Exchange on Wednesday (March 2), Genting Hong Kong said it will purchase the premises and related assets for the three shipyards in Wismar, Warnemunde and Stralsund.

Explaining the rationale for the move, the Singapore-listed company said: "The rapid growth of the world cruise industry, especially in China, has led to global cruise ship orders reaching an all-time high. As a consequence, the Group faces the potential risk of being unable to obtain sufficient cruise ship building slots at acceptable prices to implement its planned 10-year cruise ship fleet strategy for its three cruise brands, Crystal Cruises, Dream Cruises and Star Cruises.

"In order to address this risk, it is strategic that the Group acquire its own cruise shipbuilding yards to build its cruise fleet, freeing management to focus on design, planning and deployment of its planned cruise ship fleet."