GIC JV acquires Tokyo hotel for $909m

Singapore’s sovereign wealth fund GIC has entered into a joint venture with Invincible Investment Corp. to acquire Sheraton Grande Tokyo Bay Hotel for approximately $909.1 million.

GIC will own a 51 percent stake in the hotel.

Built in 1988, Sheraton Grande Tokyo Bay Hotel is a 1,016-room hotel that includes a 175-room Annex Tower opened in December 2016, and is its largest “official hotel” out of six such designated hotels. Since its opening, the hotel has remained popular among its domestic and inbound customers.

It is also located near Tokyo Disney Resort, which has attracted more than 30 million park visitors annually in recent years. Oriental Land Co., the operator of Tokyo Disney Resort, announced plans to add several new attractions at Tokyo Disneyland and Tokyo DisneySea, including a large-scale investment project of $682 million to open new attractions scheduled in the spring of 2020 in Tokyo Disneyland.

Leo 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. As a long-term value investor, we are confident in the continued growth and demand in Japan. In partnership with Invincible Investment Corp., we will seek to enhance the Sheraton Grande Tokyo Bay Hotel and support it in its next phase of growth.”