AXA Investment Managers – Real Assets (“AXA IM – Real Assets”) has agreed to acquire a 6,691 sqm / 1.65 acre development site in Sapporo, Japan, on behalf of a client, from Yamaha Corporation.
The development site will be acquired for the building of a hotel and offices, representing a total investment size of ¥25 billion (€200 million) in Sapporo.
Construction of a hotel-led development will commence, scheduled to complete in 2024. 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 city of Hokkaido island, which has a population of two million and is one of Japan’s top tourist destinations. Investment into the island’s infrastructure, including the expansion of airport and bullet train network, is expected to see it continuing to grow in popularity amongst international visitors.
“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 transaction, which presents the rare opportunity to secure a project of this size, showcases our local team’s market-leading deal sourcing capabilities. We are confident in the long-term return profile of this opportunity thanks to the combination of our development expertise and the project’s strong location in a city consistently ranked as a top tourist destination in Japan,” said Laurent Jacquemin, Head of Asia Pacific at AXA IM – Real Assets.