GIC is teaming up with a Japanese real estate investment trust (REIT) to buy the Sheraton Grande Tokyo Bay Hotel for ¥100bn (€746m).
The Singapore sovereign wealth fund will own 51% of the joint venture alongside Invincible Investment Corporation, a listed company that specialises in hotel and resdential investments..
Lee Kok Sun, CIO of GIC Real Estate, said: “Sheraton Grande Tokyo Bay Hotel, with its close proximity to Tokyo Disney Resort, has shown strong and resilient cash flows.”
He said that, as a long-term value investor, GIC was confident in the continued growth and demand in Japan.
“In partnership with Invincible Investment Corporation, we will seek to enhance the Sheraton Grande Tokyo Bay Hotel and support it in its next phase of growth,” said Lee.
“We have been investing in Japan for more than 20 years and are continually on the lookout for quality assets with stable cash-flow potential.”
The Sheraton Grande Tokyo Bay Hotel was built in 1988 and has 1,016 rooms, including a 175-room annexe tower that opened in December 2016. It is the largest of Tokyo Disney Resort’s six official hotels.