Frasers Hospitality, a division of Frasers Property, has announced the launch of two joint ventures in China and Japan with Tishman Speyer and Alyssa Partners, respectively.
This transaction entails the purchase of premium rental apartment assets in Shenzhen and Osaka for a total asset value of roughly S$170 million.
Long-stay lodging in North Asia has had sustained development and resilience, owing to demographic, economic, and social changes brought about by urban migration.
Housing affordability, which has been aggravated by the COVID-19 pandemic, has increased demand for rental flats.
The new assets will strengthen Frasers Hospitality’s existing portfolio and presence in North Asia.
"These acquisitions attest to our local teams' extensive business networks and strong deal expertise to source attractive, scalable investment opportunities," said Ms Eu Chin Fen, CEO of Frasers Hospitality.
The Shenzhen asset, a 325-unit luxury rental apartment block in the Luohu district, was acquired in collaboration with Tishman Speyer.
The site, which is strategically placed near a vital transportation hub, is projected to gain from Luohu's urban renewal ambitions over the next decade. The site is part of a mixed-use development project expected to open in the fourth quarter of 2024.
The Osaka property, a 124-unit premium rental apartment block in the Namba neighbourhood, was acquired through a joint venture with Alyssa Partners. With nearly full occupancy, the property is well-positioned to profit from ongoing revitalization efforts and increased demand in the long-stay sector.