Singapore: Banyan Tree to consolidate China assets via JV with China Vanke

Banyan Tree Holdings Limited (Banyan Tree) and China Vanke Co., Ltd (Vanke) have agreed to create Banyan Tree China (BTC), a new joint venture (JV) between Banyan Tree and Vanke, to consolidate the ownership of Banyan Tree-branded hotels and assets in China.

The amount of initial paid-up capital of BTC is estimated to be no more than RMB2 billion ($290.7 million). BTC will also be the development and management platform for new projects by both parties in hospitality, senior-living and wellness.

BTC will initially be controlled 50:50 by Banyan Tree and Vanke through the injection by Banyan Tree of all its China-owned assets into BTC at valuation, which is to be confirmed by an independent valuation methodology.

The current book value of these assets (before valuation) is approximately RMB720 million ($104.9 million). BTC will at its discretion 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 also own 40 per cent of Banyan Tree’s hotel management company in China and continue the rapid expansion of the various brands under the Banyan Tree Group namely Banyan Tree, Angsana, Cassia, Dhawa and Laguna.

Vanke will also take up approximately 5% equity stake in Banyan Tree itself, as did AccorHotels, another strategic partner with which Banyan Tree recently signed a collaboration agreement to co-develop Banyan Tree-branded hotels around the world.

Ho Kwon Ping, Executive Chairman of Banyan Tree Holdings Limited, said, “We are excited to partner with Vanke, one of the largest real estate developers in China.”

As China’s economy matures, domestic and outbound tourism is set to boom, and many property developers are venturing into hospitality and tourism. China’s demography is also prompting serious interest in senior-living and active-ageing communities as part of a global trend towards wellness. This is an area which both Banyan Tree and Vanke have experience and interest, and together we can do a lot more in China and the rest of the world,” he adds.

Also Read:

China Vanke, center of power struggle, says No. 2 shareholder has a plan

China Vanke in talks to buy assets to speed up new business development

AccorHotels buys 5% in Singapore’s Banyan Tree, boosts luxury portfolio

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.