This article is from the Australian Property Journal archive
ASTRO Japan Property Group has checked into Fukuoka by acquiring a newly constructed hotel for ¥1.6 billion (approximately A$18.8 million).
The Hotel WBF Fukuoka Tenjin Minami is a limited service ‘business hotel’ with 117 rooms. It is located in the Tenjin area, which is considered to be the business and retail centre of Fukuoka City, the largest city in the Kyushu region and the fifth largest city in Japan, and is approximately 5 minutes from the Tenjin Minami train station.
The hotel has an initial estimated average NOI yield of 4.6% on acquisition, expected to increase to 5.6% within four years, under the terms of the lease.
The lease of the hotel is for a 10 year non-cancellable term, to an experienced Japanese hotel operator, WBF Resort Okinawa Co. Ltd.
AJA senior advisor Eric Lucas said inbound Japanese tourism continues its growth surge and Fukuoka has become a key gateway, especially for visitors from China, Taiwan and Korea.
“We are very pleased to have made a further hotel investment, especially as the asset is leased on a long-term basis to an experienced operator, WBF, with which we hope to complete further transactions as its business expands,” Lucas said.
Australian Property Journal
