SINGAPORE Banyan Tree Holdings Ltd. has closed its first yuan renminbi-denominated private equity fund in China, the Banyan Tree China Hospitality Fund, with total capital commitments of RMB1.07 billion (US $214 million).
The private equity investment fund will primarily make equity investments in mainland companies undertaking hospitality projects in China that will be operated under the Banyan Tree and Angsana hotel brands.
Tianjin Banyan Tree Capital Investment Management Co. Ltd, a wholly-owned subsidiary of the company established in China, is the general partner of the China fund. The fund has made no investments to date but expects to do so in 2011, with an identified pipeline of investment opportunities.
“The China fund will further enable us to establish a portfolio of resorts and hotels in the fast developing economy of China, in line with the expansion of our plans for Banyan Tree and Angsana-branded properties into this market,” says Ho Kwon Ping, executive chairman of Banyan Tree Holdings. “With the five resorts that we currently operate and manage in the country and another 18 in the pipeline, we will be undertaking hospitality projects in the PRC that will be operated under the company’s brands of Banyan Tree and Angsana. Banyan Tree Holdings will invest an amount equivalent to at least 5% of the total capital commitments of the final closing.”