REIT ASIAPAC MAGAZINE REITASIAPAC 3Q 2019 ISSUE | Page 26

DEALS ROUND-UP REIT ASIAPAC Ichigo Hotel REIT Sells Hotel Vista Premio Kyoto Deal Type : Property Disposal Total Floor Area : 3,867.66 m Deal Value : 4.5 billion yen (US$43 million) Date : August 27 Shangri-La Expands Into Kyoto, Acquires Site Near Nijo-Jo Castle Ichigo Hotel REIT’s sale of Hotel Vista Premio Kyoto is part of their strategy to decrease their holdings in the Kyoto/Osaka area, while increasing their presence in two other regional cities by acquiring the Nest Hotel Kumamoto in April and the Valie Hotel Hiroshima in July. 2 TRANSACTIONS IN JULY COLLATED BY THE NIKKEI REAL ESTATE REPORT Invincible REIT To Acquire 18 Hotels For 83 Billion Yen Deal Type : Property Disposal Value : 82.65 billion yen (US$740 million) Date : July 1 Invincible REIT is eyeing to acquire 18 hotels from US-based Fortress Investment Group. The most expensive among the 18 properties is Hotel MyStays Sapporo Aspen, which is priced at 15.54 billion yen (US$140 million). The deals will bring Invincible’s hotel portfolio to 84 hotels. Wework Leasing 1,920 Tsubos In Toranomon Deal Type : Lease Agreement Gross Floor Area : 6,350 m Date : July 3 WeWork is set to lease eight floors in KDX Toranomon 1-Chome Building. Kenedix Office REIT acquired the building in 2016 and is currently its manager. WeWork’s lease agreement is 38.5% higher than the rent paid by the previous tenant. 2 Lendlease In Partnership To Invest 110-Billion-Yen In Data Centers In Asia Pacific Deal Type : General Investment Value : US$1 billion Date : July 11 According to the Australian Financial Review, Lendlease has partnered an institutional investor to established a US$1 billion investment fund that targets data centers in the Asia Pacific region. The partnership will be 20% funded by Lendlease and 80% by the institutional investor. Deal Type : Acquisition Gross Land Space : 4,727 m Value : 8.15 billion yen (US$73 million) Date : July 18 Shangri-La group acquired a development site near Nijo-jo Castle in Kamigyo-ku, Kyoto City. Shangri-La Hotel Tokyo, which is adjacent to Tokyo Station, is the hotel group’s only hotel in Japan. The company is expected to construct its second hotel in Japan in Kyoto, as other luxury accomodations recently started building their presence in Kyoto. 2 APL Starts Work On A Large Retail Facility In Yokosuka Deal Type : Renovation Value : 33.25 billion yen (US$300 million) Date : July 23 Asia Pacific Land started its large-scale renovation work of Shoppers Plaza Yokosuka, which is set to re-open on 2020. APL fully acquired this facility in Yokosuka City, Kanagawa Prefecture on September 2018 after buying the remaining floors from Sumitomo Life Insurance. Nomura Buys Office Building In Vietnam Deal Type : Acquisition Gross Floor Space : 17,000 m Value : Undisclosed Date : July 25 Nomura Real Estate Development acquired Zen Plaza in Ho Chi Minh City, Vietnam, as part of its overseas business strategy. Nomura is expected to invest 300 billion yen ($2.7 billion] by March 2028. Its target countries include Thailand, Vietnam, the Philippines and China among others. 2 Sumitomo Secures Office Building Site In India Deal Type : Acquisition Gross Floor Space : 12,486 m Value : 22.38 billion rupees ($320 million) Date : July 26 The site will be leased for 80 years from an organisation affiliated with the local government. 2 Blackstone Invests 100 Billion Yen In Japan Warehouses Deal Type : General Investment Value : 100 billion yen (US$926 million) Date : July 17 Blackstone Group is set to invest heavily on distribution centers in Japan. The US investment firm is expected to buy five or six sites from Singaporean state-owned property investor Mapletree, according to the Nikkei Asian Review. 26 27