China and Japan: Serviced apartment and hotel residences operator, Frasers Hospitality, has formed joint ventures (JVs) with two real estate firms to acquire rental apartments in Shenzhen and Osaka in Asia.
Frasers Hospitality has formed two joint ventures with Tishman Speyer and Alyssa Partners to acquire its first rental apartments in Shenzhen (China) and Osaka (Japan) respectively. The combined asset value is approximately $170 million Singapore dollars.
The 325-unit premium rental apartment in Shenzhen is a leasehold asset situated in the centre of the Luohu commercial and shopping district. The property will be managed and branded under Frasers Hospitality and is a part of a mixed-use development project that is set to open in the fourth quarter of 2024.
The 124-unit premium rental apartment in Osaka is a freehold asset in the Namba precinct. The property is currently operational and is at close to full occupancy.
Eu Chin Fen, CEO of Frasers Hospitality said: “Long-stay lodging assets have become increasingly resilient and attractive as an asset class. We look forward to mutually beneficial long-term partnerships with our established joint venture partners, who have chosen to join hands with Frasers Hospitality to leverage our seamless, integrated investment model and long-standing operational expertise to add value to their investments.
“These acquisitions attest to our local teams’ extensive business networks and strong deal expertise to source for attractive, scalable investment opportunities. We continue to seek compelling opportunities to further expand in the long stay lodging segment with the aim of delivering quality and sustainable returns.”
Mark Chan, COO of Frasers Hospitality, said: “North Asia is an important market to Frasers Hospitality and we are excited about the expansion momentum in this region. Growth in other regions is also gathering pace with new properties soon to open in Singapore and Cambodia, and we look forward to sharing more news of our developments as our strong pipeline benefits from normalisation in the travel and lodging industry.”
Frasers Hospitality has expanded its portfolio in north Asia with around 3,400 units across 16 properties in China, Japan and South Korea. The company recently signed a management agreement in Chengdu, China, under the Modena brand. An additional 11 properties throughout the north of Asia are slated to open in the next three years.
Frasers Hospitality is a unit of Frasers Property, an investor-developer-manager of real estate headquartered in Singapore. The hospitality arm of Frasers Property has been established for 25 years and has grown its portfolio from two properties in Singapore to more than 120 assets in over 70 cities.
Brands under Frasers Hospitality include Fraser Suites, Fraser Residence, Fraser Place, Modena by Fraser, and a design-led hotel residence brand called Capri by Fraser.
