SINGAPORE: City Developments Limited (CDL) has agreed to sell the Bespoke Hotel Osaka Shinsaibashi in Japan for JPY 14 billion (approximately S$117 million). The transaction will be executed through its indirect wholly owned subsidiary, M&C Sakura TMK, to real estate funds managed by Blackstone.
In a press release on Tuesday (Nov 25), CDL’s group chief operating officer, Kwek Eik Sheng, said the proposed divestment, which will be completed in December 2025, is part of the group’s capital recycling and active portfolio optimisation approach.
The sale comes just over two years after the group acquired the 256-room freehold lifestyle hotel, located in Osaka’s Shinsaibashi commercial district, in August 2023 for JPY8.5 billion, following Japan’s reopening to visa-free international travel in October 2022.
Mr Sheng said, “While we are committed to optimising the performance of every asset that we own, we also remain objective and pragmatic in assessing when to divest, ensuring that capital is redeployed where it can maximise shareholder value.”
Blackstone’s head of real estate in Japan, Daisuke Kitta, said, “We are pleased to strengthen our footprint in Japan and add a prime asset to our real estate portfolio.”
This is the group’s fourth divestment this year, following the sale of its stake in South Beach development, the sale of Piccadilly Galleria, and its 250-unit multifamily asset in Sunnyvale, California, bringing the group’s total contracted divestments to over S$1.8 billion year-to-date (YTD). /TISG
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