Amare Investment Management Group, Singapore, agreed on Thursday to acquire 19 hotels from China property giant Greenland Group for 21 billion yuan (US$3.3 billion), according to a report in Singapore’s Strait Times.
Amare is also setting up a joint venture with Greenland to manage the hotels, which are operating under big brands such as IHG, Starwood and Marriott.
The parties said the transaction is just a starting point for more real estate to be injected into the company, including some of Greenland’s hotels outside China.
If the private collaborations prove successful, the parties have the interest and desire to list as a Singapore-based REIT, according David Su, group chairman of Amare and the Singapore-based Glory Fund Management Group. Amare is a special-purpose vehicle set up for the deal.
The portfolio is spread over more than 10 Tier 1 and Tier 2 cities in China, including Shanghai, Nanjing and Xi’an. Greenland also has hotels in Los Angeles, Sydney and Frankfurt.