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City Developments Limited (CDL) has agreed to divest the Bespoke Hotel Osaka Shinsaibashi to a Blackstone-managed real estate fund for JPY 14 billion, as part of its capital recycling and portfolio optimisation strategy. The freehold, 256-room hotel-located in Osaka's busy Shinsaibashi district near major retail hubs and metro stations-was acquired by CDL in August 2023 for JPY 8.5 billion. Strong demand in Japan's hospitality sector supported the timing of the sale, which is expected to conclude in December. This marks CDL's fourth major divestment in 2025, contributing to more than SGD 1.8 billion in contracted sales. Blackstone said the acquisition aligns with its hospitality-focused investment strategy in Japan.
City Developments Limited (CDL) has entered into an agreement to divest the Bespoke Hotel Osaka Shinsaibashi for JPY 14 billion. The buyer is a real estate fund managed by Blackstone. CDL described this decision as part of its ongoing effort to recycle capital and optimise its global property portfolio. Advertisement
The freehold hotel, which opened in 2019, houses 256 rooms and is situated in Shinsaibashi, one of Osaka's busiest commercial districts. It sits close to Midosuji Avenue, major retail hubs such as Parco and Daimaru, and several popular retail streets. The property also benefits from its proximity to the Nagahoribashi and Shinsaibashi metro stations, which are within walking distance.
CDL had acquired the hotel in August 2023 for JPY 8.5 billion, amounting to roughly JPY 33.2 million per key. Since then, Japan's hospitality sector has continued to see strong demand supported by increasing international travel and steady tourism growth. CDL noted that these market conditions contributed to the timing of the divestment, which it expects to complete in December.
The company has been actively recycling capital across various markets this year. This Osaka transaction marks its fourth major divestment in 2025. Other deals include the sale of its stake in the South Beach development, the divestment of a multifamily project in Sunnyvale, California, and the sale of Piccadilly Galleria. With these transactions combined, CDL's total contracted divestments for 2025 have crossed SGD 1.8 billion.
Blackstone's Japan real estate leadership commented that the acquisition aligns with its focus on hospitality assets and its continued interest in the Japanese market. The firm has been expanding its presence in Japan's real estate sector, and this purchase supports its broader investment strategy.
CDL stated that the divestment is a deliberate step within its disciplined capital management approach. It aims to reinvest in areas that offer stronger long-term value, while strengthening liquidity and maintaining flexibility for future opportunities.
Source Reuters
5th Jun, 2025
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