Singapore, 25 November 2025 – City Developments Limited (CDL), through its indirect wholly-owned subsidiary, M&C Sakura TMK, has entered into a purchase and sale agreement with Real Estate funds managed by Blackstone to divest the Bespoke Hotel Osaka Shinsaibashi in Japan for JPY 14 billion (approximately S$117 million1) or JPY 54.7 million (approximately S$457,0001) per key. The proposed divestment will be completed in December 2025.
Opened in 2019, this 256-room freehold lifestyle hotel is located in Osaka’s Shinsaibashi commercial district. It is a 5-minute walk to Midosuji Avenue, lined with major international luxury brands as well as the Parco and Daimaru department stores. The popular Shinsaibashi-suji shopping street is also nearby, with Nagahoribashi and Shinsabashi stations within a 4-minute and a 6-minute walk, respectively.
CDL acquired the hotel for JPY 8.5 billion or JPY 33.2 million per key in August 2023, less than a year after Japan reopened its borders to visa-free international travel in October 2022. The hotel benefited from the positive market recovery momentum amid robust demand from international visitors, further augmented by the successful World Expo 2025 Osaka Kansai, which has recently concluded.
Mr Kwek Eik Sheng, CDL’s Group Chief Operating Officer, said, “This well-timed divestment demonstrates CDL’s ability to identify the right opportunities, taking advantage of Japan’s strong hospitality demand, and executing well to drive and unlock value since acquiring the asset just over two years ago. While we are committed to optimising the performance of every asset that we own, we also remain objective and pragmatic in assessing when to divest, ensuring that capital is redeployed where it can maximise shareholder value. This aligns with our disciplined capital recycling and active portfolio optimisation approach.”
Mr Daisuke Kitta, Blackstone’s Head of Real Estate Japan, said, “We are pleased to strengthen our footprint in Japan and add a prime asset to our real estate portfolio. This is an intersection of two of Blackstone’s high conviction investment themes – the hospitality and leisure sector and Japan. We are one of Japan’s most active foreign investors in hotels and bring a track record of investing in high-quality assets, unlocking their potential through our scale and operational expertise, and delivering value for our investors. We remain committed to identifying new opportunities and partnering with companies to deepen our Japan hospitality presence.”
The divestment of Bespoke Hotel Osaka Shinsaibashi marks the Group’s fourth major capital recycling transaction in 2025, following the divestment of its stake in the iconic South Beach development, the sale of Piccadilly Galleria, and the more recent sale of its 250-unit multifamily asset in Sunnyvale, California, bringing the Group’s total contracted divestments to over S$1.8 billion year-to-date (YTD).
The Group’s divestments align with its strategy to unlock value and redeploy capital towards opportunities that enhance growth, strengthen the balance sheet and deliver sustainable shareholder returns.
AloJapan.com