TPG Angelo Gordon is set to purchase the Grand Nikko Tokyo Daiba from Hulic Co for ¥106 billion, around $691 million.
Teaming up with Japanese real estate asset management company Kenedix, TPG is acquiring the hotel located on Odiaba, which across its 29 storeys comprises 882-rooms, six dining venues, a fitness centre and spa, shopping facilities and event spaces.
TPG’s purchase comes after the alternative asset management firm in May raised $2.5billion to invest in Asian real estate. At the time, it said it was seeking to capitalise on attractive opportunistic real estate investments with a focus on sourcing off-market transactions in the Japan, Korea, China, Hong Kong and Singapore markets, with its Japan Realty Value Fund targeting value-add real estate opportunities in Japan.
The Japanese hotel sector continues to enjoy high levels of interest. According to data from JLL, investment in Japan in the first nine months of this year totalled $3.8 billion - surpassing 2023’s full year figures - with transactions expected to reach $4.7 billion this year, up 25 per cent from 2023.