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The fund was set up in January 2008 and primarily focuses on the hospitality sector in Vietnam, Cambodia and Laos. Its principal project is Laguna Hue, an integrated resort development in Central Vietnam.
The latest fund raising is the third round. In this latest round, Banyan Tree and each of the anchor investors have increased their respective commitments by $50 million split equally among the three of them. The fund has also successfully received a commitment of $50 million from an additional investor, whose identity hasnÆt been disclosed.
Previously, in February 2008, Banyan Tree and two anchor investors û HSBC Specialist Investments and Nan Fung Group û committed to invest a combined $100 million in the fund. HSBC is the placement agent for the fund.
In July 2008, a number of other investors committed to invest a total of $68 million. Nan Fung Group is a diversified group with interests in construction, property development, property management, and textiles.
With the increase in total capital committed, the fund is well placed to proceed with the development of the first phase of Laguna Hue, without the need to rely on debt financing.
To enable the core components of an integrated resort to be in place as soon as possible, the first phase of Laguna Hue has been redesigned to comprise the Banyan Tree and Angsana resorts and spas, residences for sale as well as an 18-hole golf course and clubhouse and related infrastructure. This platform is intended to enable Laguna Hue to generate initial cash flows as well as place the fund in a better position to attract debt/equity financing for the remaining phases of the master plan.
Construction of the first phase of Laguna Hue is anticipated to commence in the first half of 2009.
The fund will continue fund raising activities to seek further commitments from investors by the final closing date, which is expected to occur in the first quarter of 2009.
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