ICP eyes Nagoya, Sapporo hotel stakes in 6.5b yen deal

ICP has proposed to acquire a stake in 2 hotel properties located in Sapporo and Nagoya, Japan via a 6.5 billion yen (S$64 million) transaction, it said late on Wednesday (Sep 21) night in a bourse filing.

The group, through its wholly-owned subsidiary, will take a 5 per cent stake in a joint venture (JV) company that acquires the properties. JV partner Topco, which is a subsidiary of a US-based global asset management firm specialising in alternative investments, will own the remaining 95 per cent.

A wholly-owned subsidiary of the JV company has entered into a conditional purchase and sale agreement to acquire the trust beneficiary interest of the properties.

ICP will incur a total cost of 334.4 million yen for the proposed acquisition, based on the agreed proportion, to be funded by internal resources and bank borrowings. The amount includes ICP’s share of the 6.5 billion yen purchase consideration, as well as the fees and transaction costs to be incurred.

The 2 hotels, which currently operate under the 2ND by hotel androoms brand, will be operated by the newly appointed Travelodge Hotels (Asia). This will expand Travelodge’s portfolio of hotels in Japan and complement ICP’s 2 other existing Travelodge hotels in Japan.

The Sapporo hotel is situated in Susukino, the primary entertainment and nightlife district in Hokkaido. Built in 2019, the hotel has 14 floors with 212 rooms.

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Meanwhile, the Nagoya hotel has 13 floors with 211 rooms and was built in 2017. It is located within downtown Nagoya, flanked by the retail district of Sakae and the traditional central business district of Fushimi – home to domestic Japanese firms in the banking, finance and telecommunications industries.

Shares of ICP closed flat at S$0.009 on Thursday.