Singapore-headquartered SC Capital Partners, the Abu Dhabi Investment Authority (ADIA) and Goldman Sachs Asset Management have formed a consortium to purchase a US$900m (€801m) hotel portfolio in Japan from Daiwa House Industry.

The portfolio of 27 resort hotels, offering a total of 7,124 rooms, is spread across Japan in major tourist destinations.

Japan Hotel REIT Advisors (JHRA), a company majority-owned by the SC Capital Partners, a specialist in local hotel asset management and operations in Japan, would play an integral role in capturing the recovery and maximising further growth of the portfolio, the partners said.

Suchad Chiaranussati, chairman and founder of SC Capital, said: “The extensive platform and network we have built in Japan over the last 13 years, particularly in the hospitality space, puts us in a unique position to capitalise on the long-term relative value of this highly-sought-after sector.”

Suchad added that the consortium gave his group an opportunity to deepen and expand its partnership with ADIA, following the launch of a data centre investment programme last year.

This is SC Capital’s first venture with Goldman Sachs, which is itself a long-time investor in Japan.

Mohamed Al Qubaisi, executive director of the real estate department at ADIA, said: “Japan’s real estate sector continues to deliver superior returns, and the country’s hotel market is well-positioned for growth from the rebound of travel.”

This investment, he said, would give ADIA exposure to a large, leisure-oriented hotel portfolio in Japan.

Takashi Murata, global co-head of Goldman Sachs Asset Management Real Estate, said the firm had invested in Japan since 1998, and it continued to see strong recovery in the Japanese hospitality sector.

“We are confident these high-quality assets located in top tourist destinations throughout Japan are well-situated to benefit from the rebound. Additionally, by implementing our strategy, we believe the platform will be positioned to attract further demand and to generate differentiated returns,” said Murata.

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