Japan Hotel REIT Investment Corporation (JHR) has completed a Yen61.8 billion global equity raise, issuing 807,000 units through a combined domestic and overseas offering, making it one of the larger recent capital raises in the hospitality J-REIT sector.
The secondary offering was first announced on Feb 25 and priced within approximately one week, reflecting strong investor demand from both domestic and international institutional investors, a press release says.
The proceeds will be used primarily to fund the acquisition of Hyatt Regency Tokyo, a landmark hotel located in Shinjuku and one of the most prominent international hotel properties in the Tokyo market for a reported Yen136 billion.
The acquisition represents a compelling strategic opportunity for JHR, its press release says. JHR plans to acquire the Hyatt Regency Tokyo at around 20% below appraisal value.
JHR is sponsored by SC Capital Partners through its ownership of Japan Hotel REIT Advisors, the REIT’s asset manager. SC Capital Partners oversees approximately US$9 billion in assets under management, with Japan representing its largest market, accounting for approximately 75% of total AUM.
