Gaw Capital Partners has made its first investment in Japan out of its funds platform with the $30 million purchase of the Hyatt Regency Osaka in Nanko bayside area of Osaka City.
The seller was Obayashi Corporation, one of Japan’s largest construction companies. Obayashi built the hotel approximately 20 years ago at the peak of the country’s property bubble. The 480-room, 969,000 square foot building is located nearby to Universal Studios as well as one of the city’s exhibition centers, but to date has been underused, according to Kenneth Gaw, managing principal and co-founder of Gaw Capital.
Obayashi is understood to have originally bought the land for the hotel for approximately $200 million, while the building’s construction is thought to have cost around JPY40 billion (€281 million; $385 million), according to Japanese media. However, the hotel asset is thought to not have been of strategic significance to Obayashi.
Gaw Capital has chosen to enter the Japan market now as it anticipates an upturn in the economy, and in particular in tourism, following the reforms of Abenomics, Gaw said.
Sourece: 04.04.2014, PERE News