AXA Investment Managers – Real Assets , a global leader in real asset investments and the leading(1) real estate portfolio and asset manager in Europe, announces that it has agreed the acquisition of a budget hotel to be completed in 2020 in Hiroshima, Japan for ¥4.6bn (€37 million). The hotel has been acquired, on behalf of a client, from a joint venture between GreenOak Investment Management K.K. and Red Planet Japan Inc, who will operate the hotel as “Red Planet Hiroshima Nagarekawa”, on a long term-term lease running to 2040.
The hotel will benefit from its strong location in the heart of Hiroshima city and easy access to public transportation, with the Ebisu-Cho and Fukuro-machi tram Stations all within walking distance. One of Hiroshima’s largest shopping districts is also within walking distance as well as some of the city’s leading tourist destinations including the Hiroshima Peace Memorial, one of the two world heritage sites in Hiroshima Prefecture. The Itsukushima Shrine, the other world heritage site in Hiroshima, is only an hour away by train and ferry or direct boats.
The Red Planet Hiroshima Nagarekawa hotel acquisition adds to AXA IM – Real Assets’ €2.5 billion portfolio of hotels across 11 countries that it manages on behalf of clients, and is the third addition to its Japan hotels portfolio. AXA IM – Real Assets’ hotels are predominantly operated by leading hotel brands through various different management contracts, from traditional leases to franchise agreements.
Laurent Jacquemin, Head of Asia Pacific at AXA IM – Real Assets, commented: “This acquisition is in line with our strategy to increase our exposure in the hotels sector in the region, and especially in the city of Hiroshima, which is consistently ranked as a top tourist destination in Japan for its world-renowned cultural landmarks, scenery, and cuisine.
We look forward to working with Red Planet, who are a well recognised brand and operator of 30 budget hotels operators across the region. As Red Planet Hiroshima Nagarekawa is their 6th development in Japan, we are well positioned to benefit from their local market expertise as well as from the expected rapidly rising inbound visitation to Japan. We will continue to seek further opportunities to add to our income producing managed portfolio, on behalf of our clients.”
1 Source: INREV/ANREV Fund Manager Survey – May 2019 – in terms of assets under management
Source : AXA Investment Managers – Real Assets