Sovereign wealth fund GIC will enter into a joint venture with Invincible Investment Corporation, a public hotel and residential J-Reit, to acquire Sheraton Grande Tokyo Bay Hotel for about 100 billion yen (S$1.2 billion).
GIC said yesterday it would own the majority stake of 51 per cent for US$463.6 million (S$626 million).
Built in 1988, Sheraton Grande Tokyo Bay Hotel is a 1,016-room hotel. It includes a 175-room annex tower which opened in December last year, located adjacent to Tokyo Disney Resort.
Since its establishment in 1984, Tokyo Disney Resort has had a proven track record of growth, attracting over 30 million park visitors annually in recent years, and is popular with both domestic and international visitors. Its operator Oriental Land has announced plans to add several new attractions at Tokyo Disneyland and Tokyo DisneySea, including a 75 billion yen project for new attractions scheduled to open in the spring of 2020.
GIC real estate chief investment officer Lee Kok Sun 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 Corporation, we will seek to enhance the Sheraton Grande Tokyo Bay Hotel and support it in its next phase of growth," he added.
GIC is a leading global investment firm with well over US$100 billion in assets under management.