CDL Announces Divestment of Bespoke Hotel Osaka Shinsaibashi for JPY 14 Billion

Strategic Transaction Reflects Robust Value Creation and Ongoing Capital Recycling

City Developments Limited (CDL) has entered into a significant agreement to divest the Bespoke Hotel Osaka Shinsaibashi to Real Estate funds managed by Blackstone for a total consideration of JPY 14 billion (approximately S\$117 million). This transaction, expected to complete in December 2025, is a strong testament to CDL’s capital recycling strategy and its ability to unlock value from its international portfolio.

Key Deal Highlights

• Sale price: JPY 14 billion (~S\$117 million) for the hotel, equating to JPY 54.7 million (~S\$457,000) per key.
• Acquisition history: CDL acquired the property in August 2023 for JPY 8.5 billion (JPY 33.2 million per key), achieving a substantial capital gain in just over two years.
• Property details: The 256-room freehold lifestyle hotel is situated in Osaka’s prime Shinsaibashi commercial district, with excellent access to shopping, luxury brands, and key transport links.
• Transaction scale: This divestment brings CDL’s total contracted divestments to over S\$1.8 billion year-to-date, including other major deals such as the South Beach development and a multifamily project in Sunnyvale, California.
• Growth drivers: The hotel benefited from Japan’s post-pandemic tourism rebound and the successful conclusion of the World Expo 2025 Osaka Kansai.

Strategic Shareholder Implications

• Material Value Creation: The sale price represents a significant uplift from the acquisition value, demonstrating CDL’s ability to time market opportunities and deliver rapid capital appreciation on hotel assets.
• Capital Recycling Momentum: The deal aligns with CDL’s ongoing strategy of optimizing its portfolio, redeploying capital to higher growth opportunities, and strengthening its balance sheet. This discipline in asset management supports sustainable shareholder returns.
• Potential Price Sensitivity: The transaction is likely to be price sensitive, given the scale of the capital gain realized, the boost to liquidity, and the ongoing momentum in portfolio optimization. The announcement may positively affect CDL’s share value due to the strong execution on capital recycling and unlocking of shareholder value.
• Further Divestments: The transaction marks CDL’s fourth major capital recycling move in 2025, following high-profile disposals in Singapore, Japan, and the US, demonstrating management’s active approach to asset rotation.
• Strategic Partnership: Blackstone, as the acquirer, is one of Japan’s most active foreign hotel investors. This deal further validates CDL’s asset quality and ability to attract leading institutional capital to its portfolio.

Detailed Asset Information

Executive Commentary

Mr Kwek Eik Sheng, CDL’s Group Chief Operating Officer:
“This well-timed divestment demonstrates CDL’s ability to identify the right opportunities, taking advantage of Japan’s strong hospitality demand, and executing well to drive and unlock value since acquiring the asset just over two years ago. 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.”

Mr Daisuke Kitta, Blackstone’s Head of Real Estate Japan:
“We are pleased to strengthen our footprint in Japan and add a prime asset to our real estate portfolio. This is an intersection of two of Blackstone’s high conviction investment themes – the hospitality and leisure sector and Japan.”

Investor Considerations

• The transaction is expected to enhance CDL’s balance sheet and liquidity, providing flexibility for future investments and growth initiatives.
• Shareholders should monitor further capital recycling activities and new acquisitions that could drive growth and returns.
• The strong execution and capital gain from this divestment may positively influence market sentiment and CDL’s share price.
• CDL’s disciplined approach to portfolio optimization underlines its commitment to maximising shareholder value and delivering sustainable returns.

Contact Information & Social Media

For media and investor queries, contact CDL Corporate Communications:
Belinda Lee – Head, Investor Relations & Corporate Communications – [email protected]
Eunice Yang – [email protected]
Jill Tan – [email protected]
Jane Sng – [email protected]

Follow CDL on social media:
Instagram: @citydevelopments
LinkedIn: citydevelopments
X (Twitter): @CityDevLtd

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own research and consult with financial advisors before making any investment decisions. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

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