Banyan Tree, Vanke joint venture acquires hotel assets of Banyan Tree China Hospitality Fund

The purchase was made through JV vehicle Shanghai Yuewan Enterprise Management, with Banyan Tree holding a 6.7 per cent stake and Vanke holding the remaining 93.3 per cent.
The purchase was made through JV vehicle Shanghai Yuewan Enterprise Management, with Banyan Tree holding a 6.7 per cent stake and Vanke holding the remaining 93.3 per cent.PHOTO: FACEBOOK/BANYAN TREE HOTEL AND RESORTS, REUTERS

SINGAPORE - A joint venture (JV) between Banyan Tree Holdings and Chinese real estate developer Vanke has acquired all the hotel assets of the Banyan Tree China Hospitality Fund for 1.35 billion yuan (S$282.2 million) as part of plans to form a strategic partnership in China.

The purchase was made through JV vehicle Shanghai Yuewan Enterprise Management, with Banyan Tree holding a 6.7 per cent stake and Vanke holding the remaining 93.3 per cent.

Following the purchase, Shanghai Yuewan was absorbed by Banyan Tree Assets (China) Holdings (BTAC), a JV company formed between Banyan Tree Holdings and Vanke for holding substantially all of the hotels and real estate assets of the JV in China.

With the acquisition, Banyan Tree's interest in BTAC has been diluted to 22.8 per cent from 50 per cent. Had the acquisition been made on Dec 31, 2017, Banyan Tree's earnings per share would have risen to 3.76 Singapore cents from 1.67 cents, while net tangible assets per share would have increased to 69.37 cents per share from 67.46 cents.

Banyan Tree shares finished S$0.015 or 2.6 per cent up at S$0.59 on Monday.