SC Capital Partners has secured an initial ¥51.7bn (€279m) commitment from an investor consortium for its value-add Japan hospitality strategy, with Canada Pension Plan Investment Board (CPP Investments) providing up to half of the total commitment.
Singapore-based real estate investment manager SC Capital said the consortium included an unnamed global institutional investor, which has backed the strategy since 2022.
The investors have made the initial commitment of up to ¥51.7bn with the potential to increase the total commitments to up to ¥112.7bn.
CPP Investments will contribute up to ¥25.4bn initially to the strategy that acquires, repositions and operate hospitality-related investments across Japan.
Suchad Chiaranussati, chairman and founder of SC Capital Partners, said: “Japan remains one of the most attractive hospitality markets in Asia, and competition has intensified meaningfully with the influx of global institutional capital. In this environment, strong local networks, disciplined underwriting and robust on-the-ground execution are the critical differentiators for dealmaking.
“Hospitality is well positioned to be among the most rewarding sectors over the next year, supported by flexible pricing dynamics that enable efficient repricing. Leveraging more than two decades of experience and our deep local presence in Japan, we are well placed to continue delivering long-term value for our investors.”
Gilles Chow, head of real estate for Asia-Pacific at CPP Investments, said: “Japan stands out as one of Asia’s most attractive hospitality markets, driven by robust growth in inbound tourism alongside sustained domestic demand.
“This partnership gives us access to high‑quality opportunities and the execution capabilities to convert these tailwinds into long‑term value for CPP contributors and beneficiaries.”
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