GIC Snags Westin Tokyo in Rumored $741M Deal

An affiliate of GIC Real Estate–the property investment arm of the Government of Singapore Investment Corp., Starwood Capital Group Global L.L.C. and Morgan Stanley Capital K.K.–has purchased the 438-key Westin Tokyo.  A source familiar with the deal told Bloomberg News that GIC paid approximately $741 million for the asset, but the companies have declined to disclose the transaction amount. The five-star hotel is located in the heart of Tokyo, in close vicinity to entertainment district Roppongi and shopping district of Shibuya and Harajuku streets. It is also surrounded by the Ebisu neighborhood and adjacent to the Yebisu Garden Place complex. Starwood Capital and Morgan Stanley originally purchased The Westin Tokyo in 2004. Each owned a 50 percent stake in the hotel and the associate operating business, both of which were included in the transaction. After the purchase, the joint venture embarked on a capital investment program focused on renovating the property and improving operations. The hotel will continue to be operated by Starwood Hotels & Resorts under its Westin brand. The transaction caps a busy month for GIC, which has 200 separate investments in over 30 countries. Two weeks ago, an affiliate of the company entered into a partnership agreement with Finnish shopping center company Citycon, purchasing a 40 percent share in Helsinki’s Iso Omena shopping center for approximately $195 million. Earlier in the month, a GIC affiliate joined ING Real Estate in joint venture to acquire the Roma Est Shopping Centre in Italy from Gruppo PAM for for approximately $593 million, the largest single asset transaction in the Italian retail market to date. Earlier this year, GIC also participated in Citigroup’s private offering of convertible preferred securities through an investment of $6.9 billion. GIC’s landmark assets include: Azia Centre in Shanghai; Shiodome City Centre in Tokyo; Seoul Finance Centre in Seoul; Queen Victoria Building in Sydney; Bluewater Shopping Centre in Kent, U.K.; 20 Gresham St in London; the Westin Paris in Paris; Uptown Munich Tower in Munich; and Franklin Centre in Chicago.