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Singapore-based hotel company Banyan Tree Holdings is forming a "strategic partnership" with Chinese developer Vanke to boost its expansion in China. The hotelier is tying up with Vanke to set up Banyan Tree China (BTC), a joint venture with an estimated initial paid-up capital of up to RMB 2 billion (SGD 414.2 million). The joint venture will develop and manage new hospitality, senior living and wellness projects. BTC will initially be a 50:50 joint venture through the injection of Banyan Tree Holdings' assets in China, which have a book value of about RMB 720 million. These will include three assets fully owned by the hospitality company - Banyan Tree Lijiang, Banyan Tree Ringha and Laguna Chengdu, which is still under development and will feature a Banyan Tree property. Banyan Tree Holdings will also issue shares amounting to SGD 25 million to Vanke by private placement at 60 cents apiece, giving Vanke a stake of about 5%. Vanke will nominate one director to the Banyan Tree Holdings board. |
