Star Asia REIT Acquires Two Hotels as Part of Portfolio Rebalancing Strategy, Japan
Star Asia Investment Corporation (“SAR”), a Japan-based Real Estate Investment Trust (“REIT”) managed by Star Asia Investment Management Co., Ltd. of the Star Asia Group, has completed several domestic transactions as part of a portfolio rebalancing strategy under its “New Mid-Term Plan.” The acquisitions include two hotel assets: the 204-key KOKO HOTEL Nagoya Sakae in Aichi Prefecture for JPY3.95 billion, and the 170-key KOKO HOTEL Sendai Station West in Miyagi Prefecture for JPY2.875 billion. This translates to approximately JPY19.4 million and JPY16.9 million per key respectively. Each property is leased under a hybrid rent structure consisting of fixed and variable components. Combined, they generate a monthly fixed rent of JPY12,375,000, and the variable rent component is calculated as 85% of the monthly Gross Operating Profit (“GOP”), minus the fixed rent, applicable only up to the amount of the fixed rent. In parallel, SAR divested one retail and one residential asset for a total of JPY8.286 billion, supporting the capital recycling initiative. Additionally, SAR acquired a mezzanine loan for JPY952 million, backed by four hotel assets in Tokyo and Osaka. The loan carries a floating rate of base rate plus 5.0%. These moves align with SAR’s goal of reaching JPY500 billion in assets under management by 2030.
Seibu Prince Acquires Ace Group International for USD90 Million
Japan-based Seibu Prince Hotels Worldwide (“Seibu Prince”) has announced the acquisition of US-based Ace Group International, the parent company of Ace Hotel and creative agency Atelier Ace, for approximately USD90 million. The acquisition includes Ace Hotel hotel brand, which currently consists of eight boutique lifestyle hotels across North America, Europe, and Asia, with a pipeline that includes a new property in Fukuoka, Japan, scheduled to open in 2027. Following the transaction, Ace Group International will operate as a wholly owned subsidiary of Seibu Prince, retaining its brand identity and creative independence, while leveraging from Seibu Prince’s scale and operational expertise across Asia-Pacific and the Middle East. The acquisition marks Seibu Prince’s entry into the global lifestyle boutique segment and expands its international hotel portfolio beyond its existing assets in Japan and abroad.
TPG AG and Hanison Sells The Connaught for HKD410 Million in Hong Kong
Joint venture partners, US-based investment manager, TPG Angelo Gordon (“TPG AG”) and Hong Kong-based property developer and building contractor, Hanison Construction Holdings Limited (“Hanison”), are divesting the 52-key The Connaught to an undisclosed buyer for HKD410 million. This translates to approximately HKD7.9 million per key. The buyer is said to pay an additional HKD30 million for the hotel license linked to the property. The property was originally acquired in 2018 as Citadines Harbourview Hong Kong for HKD730 million. The disposal will result in a loss of approximately HKD177 million, which is about 44 percent lower than the original purchase price. The 999-year leasehold hotel offers a total gross floor area of 3,875 square metres (“sqm”) and includes amenities such as a fitness centre and launderette. Located in Connaught Road West, the hotel is within a 3-minute walk of the Sai Ying Pun MTR station and around 30 minutes by car from Hong Kong International Airport.
APA Hotel Gifu-Hashima Ekimae Acquired for JPY920 Million in Japan
Japan-based Nippon Hotel & Residential Investment Corporation has acquired the 146-key APA Hotel Gifu-Hashima Ekimae from APA Home Co., Ltd., a wholly owned subsidiary of APA Group Co., Ltd. (“APA Group”), for JPY920 million. This translates to approximately JPY6.3 million a key. The hotel, built in 1996, is located in Gifu Prefecture of Japan and sits on a site of approximately 1,025 sqm spanning a total floor area of 2,981 sqm across 11 storeys. The property offers a range of amenities, including a restaurant with breakfast service, a launderette, and a conference room. Strategically positioned just a one-minute walk from Gifu-Hashima Station on the Tokaido Shinkansen high-speed rail line, the hotel enjoys regional connectivity, around 10 minutes by train to Nagoya Station and 30 minutes to Kyoto Station. The asset is fully leased to a single tenant under a 20-year lease agreement ending in August 2045. The lease provides a fixed monthly rent of JPY5,328,000, along with a variable rent component paid biannually.
Japanese Luxury Onsen Ryokan-Focused Atona Impact Fund Closes at JPY22 Billion
The Atona Impact Fund, a real estate investment vehicle focused on the development and renovation of luxury onsen ryokans (traditional Japanese hot spring inns) in Japan, has reached a final close with JPY22 billion in committed capital. The fund is a joint venture between US-based Hyatt Hotels Corporation and Japan-based partners Takenaka Corporation, a company with contracting, architectural, and engineering capabilities, and Japan-based Kiraku Co., Ltd. (“Kiraku”), a developer specialising in traditional ryokan properties. Limited partners in the fund include a range of institutional and strategic investors such as Japan-based Aratama Corporation Co., Ltd. and Japan-based MUFG Bank, Ltd., among others. While the fund plans to roll out projects across Japan, the initial developments are slated for Hakone, Yufu (on Kyushu), and Yakushima Island. These properties are expected to begin operations in 2026.
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