GIC acquires 51% stake in Sheraton Grande Tokyo Bay hotel

The Sheraton Grande, built in 1988, is a 1,016-room entity which opened a 175-room Annex Tower in December 2016, located near Tokyo Disney Resort (TDR).
The Sheraton Grande, built in 1988, is a 1,016-room entity which opened a 175-room Annex Tower in December 2016, located near Tokyo Disney Resort (TDR).PHOTO: REUTERS

SINGAPORE - GIC, Singapore's sovereign wealth fund, will enter into a joint venture with Invincible Investment Corporation, a Japanese public hotel and residential reit, to acquire a 51 per cent majority stake in Sheraton Grande Tokyo Bay hotel for US$463.6 million (S$623.9 million), the company said in a release on Thursday (Sept 21).

The Sheraton Grande, built in 1988, is a 1,016-room entity which opened a 175-room Annex Tower in December 2016, located near Tokyo Disney Resort (TDR).

Since its establishment in 1984, TDR has had a proven track record of growth, attracting over 30 million park visitors annually in recent years, and is popular with the domestic and international visitors.

Oriental Land Co, the operator of TDR, has announced plans to add several new attractions at Tokyo Disneyland and Tokyo DisneySea, including a large-scale investment project of 75 billion yen (S$917.8 million) to open new attractions scheduled in the spring of 2020 in Tokyo Disneyland.

"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," said GIC Real Estate chief investment officer Lee Kok Sun. "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," he said.

"We have been investing in Japan for more than 20 years and are continually on the lookout for quality assets with stable cash-flow," Mr Lee said.