Japan’s Ichigo Selling Fukuoka Hotels for $59M and More Asia Real Estate Headlines

Ichigo Inc chairman Scott Callon

Japan’s Ichigo plans to sell two properties to the firm’s sponsored hotel REIT, with that divestment leading today’s headline roundup. Also in the news, co-working giant WeWork is closing two Singapore locations and global fund managers are upping Korea housing bets.

Japan’s Ichigo Selling Pair of Properties to Hotel Division for $59M
Japanese developer and investment manager Ichigo late last week announced plans to sell a pair of hospitality assets to its Ichigo Hotel REIT for JPY 9.1 billion ($59 million).

In a statement to the Tokyo Stock Exchange, the firm led by American Scott Callon said it decided to sell The OneFive Marine Fukuoka for JPY 2.6 billion and Nest Hotel Hakata Ekimae for JPY 6.5 billion, with both properties located in the Kyushu island city of Fukuoka. Read more>>

WeWork Closing Pair of Singapore Locations
WeWork is giving up space in two prime locations in Singapore, underscoring the company’s challenges in one of its most promising markets.

One co-working space spanning the 17th to 20th floors at Manulife Tower along Singapore’s 8 Cross Street has ended operations. Another three-floor space in an office building at 83 Clemenceau Avenue on the city centre fringe will close next year. Read more>>

Morgan Stanley, KKR, ICG Expand Korea Residential Bets
Investment bank Morgan Stanley has entered the rental housing market in South Korea. US investor KKR and British asset manager ICG are also acquiring residential properties in Seoul for rental purposes.

Global investment giants are showing interest in Korean residential properties as the country’s rental housing market shifts from traditional lease arrangements — known locally as “jeonse” — to monthly rental contracts. The change is driven by a rise in single and two-person households and mounting concerns over jeonse fraud. The transition has caught the attention of global asset managers who see long-term growth potential and a profitable investment opportunity. Read more>>

China Govt Land Sales Revenue Dropped 23% in First 10 Months of 2024
China’s government posted a 22.9 percent decline in land sales revenue for the first 10 months of 2024, finance ministry data showed Monday.

Revenue from government land sales had fallen 24.6 percent in the first nine months of the year. China’s local governments have long relied on land sales to boost their revenues, but this source of income has sharply declined since 2022 as cash-strapped developers have reduced their land acquisitions. Read more>>

Seoul Apartment Prices Drop for First Time in Nine Months
Apartment prices in Seoul slipped for the first time in nine months, in the latest data supporting the Bank of Korea’s policy pivot last month and foreshadowing the potential for an acceleration of monetary easing next year.

An index representing prices slid 0.01 percent in September versus August, the first dip since December, according to data Sunday from the Korea Real Estate Board. The numbers underscored the slowdown in housing prices that allowed the central bank to go ahead with a quarter-point cut to its benchmark interest rate in October. Read more>>

Japan’s JR East to Open Takanawa Gateway City Project in March
Japan’s JR East railway company has announced that Takanawa Gateway City, its large-scale development project in Tokyo’s Minato ward, will officially open on 27 March 2025.

The development site, spanning 74,000 square metres (796,529 square feet), lies on the west side of Takanawa Gateway Station on the JR Yamanote Line. The area is organised into a series of structures stretching north to south, including a residential building, a cultural innovation building and two interconnected multipurpose towers, the first of which is set to open in April 2025, with the remaining facilities scheduled for completion in spring 2026. Read more>>

Private Chinese Developers Seen Venturing Back Into Govt Land Sales
Chinese private developers are starting to make an appearance at land auctions across the country again, but industry insiders warn that they are mainly bargain hunting and overall the mood remains cautious.

Private real estate firms have been largely absent from land auctions since the second half of 2021, due to the deteriorating state of their finances, poor sales and even debt risks. But since the end of September, in the wake of a raft of government stimulus policies being rolled out, investment funds, including private companies, have returned to the land market. Read more>>

Marriott Opens 100th Japan Property in Collaboration With KKR
Marriott International on Monday announced the opening of its 100th property in Japan, the Four Points Flex by Sheraton Osaka Umeda, marking the debut of the brand in Asia Pacific, excluding China, alongside global investment firm KKR.

The hospitality company is anticipating 12 more Four Points Flex by Sheraton properties across Japan this year, which will also mark the company’s entry to key cities such as Morioka and Kanazawa. The expansion is expected to see a total of 14 properties join the brand in Japan through early 2025, adding more than 3,600 rooms to Marriott’s growing portfolio across destinations including Hakodate, Utsunomiya, Yokohama, Nagoya, Osaka, Kyoto, Kobe and Hakata. Read more>>

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