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Banyan Tree forms partnership with China-based Vanke
BANYAN Tree Holdings is forming a joint venture, Banyan Tree China (BTC), with real estate developer China Vanke to consolidate the ownership of Banyan-Tree branded hotels and assets in China.
BTC will also be the development and management unit for new projects in hospitality, senior living and wellness. The initial paid-up capital of BTC will be up to two billion yuan (S$414 million).
BTC will be initially controlled 50:50 by Banyan Tree and Vanke through the injection by Banyan Tree of all its China-owned assets into BTC at valuation, said Banyan Tree in a press release. The current book value of those assets before valuation is some 720 million yuan.
In addition, BTC will invite owners of the other 15-plus existing hotels and 20-plus hotels bearing various Banyan Tree brands under development in China to inject their hotels into BTC under mutual agreement. Vanke may also inject hotels it owns as well as future hotels under development into BTC.
BTC will own 40 per cent of Banyan Tree's hotel management company in China and continue to expand the brands in the group's portfolio. These are Banyan Tree, Angsana, Cassia, Dhawa and Laguna.
Meanwhile, Vanke will take up a 5 per cent equity stake in Banyan Tree itself, as did AccorHotels. AccorHotels is a strategic partner of Banyan Tree which recently signed a collaboration agreement to co-develop Banyan Tree-branded hotels around the world.