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Banyan Tree Capital

Strategy

Banyan Tree Capital’s objectives are to generate income and capital gains for its funds through the development and ownership of premium resorts, hotels and residences. This may include the acquisition of pre-existing properties for enhancement to be re-branded under the Banyan Tree or Angsana properties umbrella.

Unlike many fund managers, Banyan Tree Capital has its own dedicated construction, project management and cost management capabilities, enabling it to fulfil the role of a developer and assume full ownership of any projects.

Banyan Tree Capital seeks to:

  • Leverage Banyan Tree group’s expertise in resort and hotel design, development and management to maximise returns
  • Identify strong investment opportunities for its funds in branded resorts, hotels and residences characteristic of Banyan Tree and Angsana and where there is:
    • the potential to generate income and capital gains to provide funds with a commensurate risk adjusted return;
    • the potential for high revenue to cost ratios;
    • accessibility to the location;
    • strong market demand;
    • an opportunity for establishing a niche positioning in the location;
    • potential for strong organic growth;
    • natural beauty and/or other characteristics to differentiate the site;
  • Rigorously manage all development costs

Portfolio

Banyan Tree Indochina Hospitality Fund

Banyan Tree Indochina Hospitality Fund is the first real estate development fund established by Banyan Tree Capital. The Indochina Fund invests primarily in the Laguna Vietnam project located in the Chan May-Lang Co Economic Zone, Vietnam and to a smaller extent Cambodia and Laos.

  • US dollar-denominated private, closed-ended limited liability partnership
  • Core investment: Laguna Lang Co, Hue, Central Vietnam, which is positioned to be a  fully integrated world-class destination resort comprising Banyan Tree and Angsana Hotels, Residences , a championship golf course and other branded properties
  • 7-year fund life
  • Final Closing: June 2009
  • USD 283 million capital commitments

Banyan Tree China Hospitality Fund

Banyan Tree China Hospitality Fund is a real estate development fund, primarily focused on the hospitality sector in China. The Fund will be developing, under the Banyan Tree and Angsana brands, a number of hospitality projects at iconic locations in China, including Lijiang and Yangshuo.

  • Renminbi-denominated private, closed-ended limited liability partnership
  • Core investment: Banyan Tree Yangshuo Hotel, Banyan Tree Huangshan Hotel and Residences, Angsana Lhasa Hotel, Banyan Tree Residences in Lijiang
  • 6-year fund life
  • Final Closing: January 2011
  • RMB 1.07 billion capital commitments