New York-based global investor KKR and real estate private equity firm Gaw Capital Partners have agreed to acquire Hyatt Regency Tokyo from Odakyu Electric Railway Company.
Built in 1980, the 746-room luxury hotel is located in Shinjuku, one of Tokyo’s busiest business and retail districts, and adjacent to the Tokyo Metropolitan Government headquarters. The hotel sits in a prime location among Class-A office buildings and in close proximity to public transportation networks including Tochōmae and Shinjuku stations.
The transaction is expected to be completed by the second quarter of this year, subject to regulatory approvals and closing conditions. Further details of the investment have not been disclosed.
KKR is making its investment through Asia Real Estate Partners. The deal marks KKR’s first hotel investment in Japan and the latest in the real estate sector in Asia-Pacific. Its KJR Management (formerly Mitsubishi Corp.-UBS Realty Inc.) oversees two Japanese real estate investment trusts, a portfolio of multi-family properties in Tokyo, and office assets across Japan. Globally, KKR’s real estate team manages approximately US$65 billion in assets as of December 31 2022.
Hong Kong-based Gaw Capital Partners entered the Japan market in 2014 through its first investment in Hyatt Regency Osaka and successfully exited as the second largest hotel deal in Osaka in 2016. The firm is currently managing properties of various asset classes in Japan, including a logistics portfolio with seven fully-let assets across Greater Tokyo, a portfolio of multi-family residential assets in city centre locations, primarily in Tokyo and other major cities in Japan, a property in Fuchu Intelligent Park for redevelopment into a Tier III data centre.
In early 2022 Gaw Capital also completed the US$3 billion privatization of Office J-REIT. As of the third quarter of 2022, it was managing US$33.6 billion of assets globally.