Axa Investment Managers – Real Assets has agreed the acquisition of a site for the development of offices and a hotel in Sapporo, Japan for ¥25 billion (US$231 million).
The 6,691 square metre acquisition is on behalf of a client, Yamaha Corporation.
“Construction of a hotel-led development will commence, scheduled to complete in 2024,” Axa IM – Real Assets said in a statement.
“The current plans comprise a single asset offering a mix of modern office space and hotel accommodation, addressing the two primary areas of demand in the local area, with advanced discussions already underway for the pre-let of both elements.”
Sapporo is the capital and largest city on the island of Hokkaido and is also Japan’s fifth-largest city. The asset manager said infrastructure investment, including airport expansion and a bullet train network, will contribute to greater tourist numbers.
On the acquisition, Laurent Jacquemin, head of Asia Pacific at Axa IM – Real Assets, said: “This ambitious project will deliver significant new supplies of high-quality office and hotel accommodation to the Sapporo market, which is characterised by a clear shortage of Grade A stock coupled with soaring levels of demand.”
The investment follows a hotel purchase in Hiroshima and is Axa IM – Real Assets’ third in the city of Sapporo.
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