Daiwa House Industry Sells a Hotel Portfolio to ADIA Included Investor Group

Posted on 07/19/2023

Japan’s real estate sector continues to attract large asset owners such as sovereign wealth funds. SWFs like GIC Private Limited are keen on leisure-oriented hotels.

Singapore-headquartered private equity real estate firm SC Capital Partners Pte Ltd (SCCP) has formed a consortium with a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and Goldman Sachs Asset Management. The investor group acquired a portfolio of 27 resort hotels in Japan from Daiwa House Industry, a Japan-based home construction and real estate development company. The hotels are located in major tourist destinations across Japan. The investment strategy will focus on increasing top-line revenue, rebranding initiatives, improving distribution channels, and refurbishment works. The portfolio was acquired for approximately US$ 900 million and includes a total of 7,124 rooms. Japan Hotel REIT Advisors Co., Ltd. (JHRA), a company that is majority-owned by the SCCP Group and a specialist in local hotel asset management and operations in Japan, will play an integral role in capturing the recovery and maximizing the further growth of the portfolio.

Established in 2004, SC Capital Partners Pte. Ltd. is an employee-owned, Asia Pacific real estate investment manager headquartered in Singapore.

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