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Hotel Properties inks JV with Japan real estate firm to invest in hotel, condo
HOTEL Properties Limited announced on Thursday that it has entered into a joint-venture (JV) agreement with Japanese real estate firm Tokyo Tatemono Co to acquire a 75 per cent stake in a new hotel and a 25 per cent co-ownership interest in up to 450 condominium units for approximately 20.85 billion yen altogether (S$257 million).
Both the hotel and the condominium components will be developed under a proposed 50-storey mixed development project with a total gross floor area of about 80,000 square metres located on a freehold site in Dojima 2-chome, Osaka City, Japan.
The site has a total land area of approximately 4,828 sq m and is currently owned by Tokyo Tatemono.
Subject to the granting of planning approval for the redevelopment of the Dojima site, the construction of the project is expected to take about four to 4½ years.
The group said that the proposed investments will enable it to expand its hotel and residential property portfolio to a new market in a major international destination in Japan.
The Dojima site is located near Umeda Station, and is also an approximately 15-minute walk to Osaka Station. The Umeda/Kita district is also the transport and business hub of the city.
Hotel Properties said that the investments will be funded by a combination of internal funds and external bank financing.
The JV is not expected to have a material impact on the consolidated net earnings per share and consolidated net tangible assets per share of the group based on its audited consolidated financial statements for the financial year ended Dec 31, 2018.