Ascendas Hospitality Trust has agreed to buy the Osaka Namba Washington Hotel Plaza in Osaka, Japan for 8.9 billion yen in a deal that would diversify its portfolio and boost returns.
The purchase price that will be paid to Ainodake Godo Kaisha is 3.3 percent below the independent property valuation of 9.2 billion yen made by Savills Japan, reports Channel News Asia.
The hotel will continue to be leased to Washington Hotel K.K. until December 31, 2015, under a fixed-term building lease agreement for a fixed rent of 652.6 million yen per year, Ascendas Hospitality said on Wednesday.
"Osaka Namba Washington Hotel Plaza is a hotel in an excellent location within the vibrant city of Osaka," Ascendas Hospitality CEO Tan Juay Hiang said in a statement. "This acquisition deepens our presence in Japan and is expected to be DPS (distribution per stapled security) accretive."
Ascendas Hospitality currently owns 11 hotels with over 3,900 rooms in key cities in Australia, China, Japan and Singapore.