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Hotel Properties Limited (HPL) has entered into a joint venture agreement with Japanese firm Tokyo Tatemono Co.,Ltd. to acquire a 75 percent stake in a 180-room hotel and a 25 percent co-ownership interest in up to 450 condo units for about 20.85 billion yen (S$257 million) altogether.
In an SGX filing, HPL revealed that both the hotel and condominium components will be “developed under a proposed 50-storey mixed development project with a total gross floor area of about 80,000 square metres located on a freehold site at 17-5, Dojima 2-chome, Kita-ku, Osaka-shi, Osaka City, Japan”.
With a land area of about 4,828 sq.m., the site is currently owned by Tokyo Tatemono.
Subject to the granting of planning approval for the site’s redevelopment, construction works for the project is expected to take around four to four-and-a-half years.
HPL believes the proposed investments will enable the group to “expand its hotel and residential property portfolio to a new market in a major international destination in Japan”.
It intends to fund the investments via a combination of external bank financing and internal funds.
“The joint venture is not expected to have a material impact on the consolidated net earnings per share and consolidated net tangible assets per share of the HPL Group based on the HPL Group’s audited consolidated financial statements for the financial year ended 31 December 2018,” it added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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