SINGAPORE – City Developments is proposing to divest a hotel in Osaka, Japan, to real estate funds managed by Blackstone for 14 billion yen (S$117 million).
On Nov 25, CDL said that its wholly owned subsidiary M&C Sakura TMK has inked a purchase and sale agreement with the potential buyers to divest the hotel, Bespoke Hotel Osaka Shinsaibashi.
Set to be completed in December, the proposed divestment marks the group’s fourth major capital recycling transaction in 2025. It follows
CDL’s sale of its stake in the South Beach development
as well as the sales of Piccadilly Galleria and its multifamily asset in Sunnyvale, California, and brings the group’s total contracted divestments in the year to date to more than $1.8 billion.
CDL said the divestment aligns with its strategy to “unlock value and redeploy capital towards opportunities that enhance growth, strengthen the balance sheet and deliver sustainable shareholder returns”.
Mr Daisuke Kitta, Blackstone’s head of real estate for Japan, said the proposed deal will strengthen the investment firm’s footprint in Japan through the addition of a prime asset to its real estate portfolio.
Noting that the deal stands at the “intersection of two of Blackstone’s high conviction investment themes – the hospitality and leisure sector, and Japan”, Mr Kitta added that Blackstone intends to identify new opportunities and partner with companies to deepen its hospitality presence in Japan.
Opened in 2019, Bespoke Hotel Osaka Shinsaibashi is a 256-room freehold lifestyle hotel located in Osaka’s Shinsaibashi commercial district. It is a five-minute walk from Midosuji Avenue, a street known for major international luxury brands and department stores.
With a land area of 938 sq m and a gross floor area of 5,585 sq m, it is close to the famed Shinsaibashi-suji shopping street and is a four-minute and six-minute walk from Nagahoribashi and Shinsabashi stations respectively.
CDL acquired the hotel for 8.5 billion yen 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,” CDL said.
Mr Kwek Eik Sheng, CDL’s group chief operating officer, remarked that the divestment is “well-timed” as it “(takes) advantage of Japan’s strong hospitality demand”.
Shares of CDL traded on Nov 25 at $7.08.
THE BUSINESS TIMES
AloJapan.com