Banyan Tree has entered into a joint venture agreement with one of Mexico's most decorated winemakers, Monte Xanic, to build an exclusive vineyard resort in Mexico.
Banyan Tree will take up minority equity of approximately 20% in the joint venture and will participate in the architectural and interior design of the resort.
When completed, the vineyard resort will be managed by Banyan Tree. It will be the first luxury spa and resort of its kind in Valle de Guadalupe, Baja California, one of Mexico's oldest and most premier wine regions.
The site earmarked for the joint project is nestled in the hills on land owned by Monte Xanic, which also encompasses its sprawling vineyards and winery. The region is a two-hour scenic drive from San Diego, USA. Measuring seven hectares, the resort will be set on prime hillside land affording breathtaking views of the entire property and valley site.
At 396 metres above sea level and 16 kilometres from the Pacific Coast, the region boasts of the ideal Mediterranean climate. The resort is expected to feature some 40 luxurious pool villas.
The project marks Banyan Tree's fifth development in Mexico, following Acapulco, Riviera Maya, Los Cabos and Chamela. Its first resorts in Mexico, Banyan Tree Mayakoba in Riviera Maya and Banyan Tree Punte Diamante in Acapulco are expected to be launched next year.
Both Banyan Tree and Monte Xanic are regarded as pioneers and leaders in their respective industries – Banyan Tree for its signature spa resort sanctuaries and Monte Xanic for its production of top quality wines in Mexico. Both parties believe the joint venture will help build brand equity for their businesses.
This project is not expected to have any material financial impact on the Group's earnings and its net tangible assets for 2007.