Senja Close EC™

City Developments Limited (CDL), a prominent real estate company, has announced the sale of the Bespoke Hotel Osaka Shinsabaishi. This 256-room property located in the commercial district of Shinsaibashi, Osaka, has been sold for JPY14 billion, equivalent to approximately $117 million, or JPY54.7 million ($457,000) per key. The transaction was managed through CDL’s subsidiary, M&C Sakura TMK, which agreed on the sale to real estate funds operated by Blackstone. The completion of this sale is scheduled for December.

Details of the Bespoke Hotel Osaka Shinsabaishi Sale

The Bespoke Hotel Osaka Shinsabaishi, which opened its doors in 2019, sits in a vibrant area near the Shinsaibashi-suji shopping street and Midosuji Avenue. Both Nagahoribashi and Shinsaibashi stations on the Osaka Metro line are easily accessible by foot from the hotel. CDL had acquired this property in August 2023 for JPY8.5 billion, or JPY33.2 million per key.

In comparison to new developments such as the Senja Close EC, which is attracting attention in different regions, the sale of Bespoke Hotel indicates a strategic shift and capital reallocation by CDL. Such initiatives emphasize the dynamic nature of real estate investments and the importance of location and timing in property management and sales.

CDL’s Strategic Divestments in 2023

The sale of the Bespoke Hotel marks CDL’s fourth significant capital recycling effort within the year. Earlier, CDL successfully divested a 50.1% stake in the South Beach mixed-use development to IOI Properties Group. Additionally, the company sold the Piccadilly Galleria, a retail podium at Piccadilly Grand, and a 250-unit multifamily asset in Sunnyvale, California. Collectively, these transactions have brought CDL’s total divestments to over $1.8 billion for the year.

Commentary from CDL’s COO

Kwek Eik Sheng, the Group Chief Operating Officer of CDL, commented on the transaction, highlighting it as a “well-timed divestment.” He noted that this move showcases CDL’s capacity to pinpoint the right opportunities, leveraging the strong demand in Japan’s hospitality sector, and effectively unlocking value from the assets acquired just over two years prior.