Frasers Hospitality, a key unit of Frasers Property, has announced the formation of two joint ventures with Tishman Speyer and Alyssa Partners in China and Japan, respectively.
This move includes the acquisition of premium rental apartment assets in Shenzhen and Osaka for a combined asset value of approximately S$170 million.
The long-stay lodging sector in North Asia has shown consistent growth and resilience, spurred by demographic, economic, and social changes due to urban migration.
Housing affordability, an issue exacerbated by the COVID-19 pandemic, has led to heightened demand for rental apartments.
The new assets will strengthen Frasers Hospitality’s existing portfolio and presence in North Asia.
“These acquisitions attest to our local teams’ extensive business networks and strong deal expertise to source attractive, scalable investment opportunities,” said Ms Eu Chin Fen, CEO of Frasers Hospitality.
The Shenzhen asset, a 325-unit premium rental apartment in the Luohu district, was jointly acquired with Tishman Speyer.
Strategically located near a key transportation hub, the property is expected to benefit from Luohu’s urban renewal plans over the next decade. The property is part of a mixed-use development project set to open in Q4 2024.
The Osaka property, a 124-unit premium rental apartment in the Namba precinct, was procured through a joint venture with Alyssa Partners. At near-full occupancy, the property is poised to benefit from ongoing revitalisation efforts and rising demand in the long-stay sector.
The acquisitions align with Frasers Hospitality’s post-pandemic expansion strategy, as it evolves into a global lodging real estate player. “Long-stay lodging assets have become increasingly resilient and attractive as an asset class,” Ms Eu Chin Fen noted.
Mark Chan, COO of Frasers Hospitality, added that North Asia is an important market for the company, and growth in other regions is also gathering pace.
Frasers Hospitality, a strategic business unit of Frasers Property, is one of the world’s largest and fastest-growing providers of serviced and hotel residences and investors in the long-stay lodging segment. With over 120 properties in 70+ cities, it remains committed to meeting the evolving needs of executive travellers.
BusinessNewsAsia