Banyan Tree

Banyan Tree: is selling its 93.43% owned resort “Angsana Velavaru” in the Maldives to CDLH Trust, for the sum of US$71m, in a sale and lease back transaction. Banyan Tree will lease back the property for a period of 10yrs where it pays a base rental and is entitled to a % of gross operating profit based on an agreed formula by both parties. The sale is in line with Banyan Tree’s ongoing strategy to unlock the value of its properties and accelerate the rebalancing of the group’s asset portfolio and re-deploy capital to other growth regions. Based on FY11 numbers, the sale will result in Banyan Tree’s EPS rising from 0.2cts to 2.11cts, and a 3.7% increase in NTA/sh to 69.62 cts.