Singapore sovereign wealth fund GIC takes majority stake in Tokyo Sheraton

The 1,016-room Sheraton Grande Tokyo Bay Hotel.

Singapore sovereign fund GIC Private Limited has reportedly acquired a 51-percent stake in the Sheraton Grande Tokyo Bay Hotel, close to the Tokyo Disney Resort, for $464 million. It's said to be one of its largest investments in Japan in recent years.

The remaining 49 percent of the hotel is being acquired by Invincible Investment Corp., a Japanese real estate investment trust sponsored by U.S. investment firm Fortress Investment Group, which was the seller of the property.  

GIC has bought the hotel with Invincible Investment Corp , a real estate investment trust managed by U.S. buyout firm Fortress Investment Group, in a deal worth $909 million. The JV deal is worth approximately $909 million. 

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The hotel has 1,016 guest rooms including a 175-room annex tower that opened in December 2016. It is located next to Tokyo Disney Resort, and is the largest hotel among the list of "official" Disney accommodations. 

“Sheraton Grande Tokyo Bay Hotel, with its close proximity to Tokyo Disney Resort, has shown strong and resilient cash-flow,” Lee Kok Sun, chief investment officer for GIC Real Estate, said in a statement. "We have been investing in Japan for more than 20 years and are continually on the lookout for quality assets with stable cash-flow."

According to Asia's Nikkei, the total acquisition price is roughly double the reported amount paid by Fortress when it acquired the hotel in 2013. 

Tokyo will host the summer Olympics in 2020, which should prove to be a windfall for the region's hotels. 

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