China Vanke to sell shares in Singapore hotel chain Banyan Tree’s mainland China units for US$67 million
- Vanke is selling its stake in the hotel management joint ventures including Banyan Tree Services (China) and Banyan Tree Hotel Management (China)
- One of the few remaining investment-grade Chinese developers, Vanke has three notes coming due next year in March, May and June
Real estate giant China Vanke is selling its stake in luxury hotel chain Banyan Tree Holdings’ China units, a deal that will generate 480 million yuan (US$67 million) for the developer seeking to weather the country’s property downturn.
Vanke will sell its equity in the hotel management joint ventures including Banyan Tree Services (China) and Banyan Tree Hotel Management (China), according to a filing by the Singapore company on Thursday. The shares in the units were valued in the range of 440 million yuan to 486 million yuan.
The Chinese firm faces mounting pressure due to debt obligations. As the nation’s second-biggest developer by sales, Vanke is burdened with sluggish sales, falling revenue and 1.28 trillion yuan in liabilities.
Vanke’s Hong Kong shares rose 4.4 per cent on Thursday, paring this year’s decline to nearly 54 per cent.
The company, one of the few remaining investment-grade Chinese developers, has three notes coming due next year in March, May and June.
