Seibu Holdings Invests in Luxury Hotel Fund Through Subsidiary

TOKYO, Jul 29 (Pulse News Wire) – Seibu Holdings Inc. (9024.T) announced that its subsidiary, Seibu Real Estate Co., Ltd., entered into an anonymous partnership agreement with a special purpose company (SPC) to acquire trust interests related to The Prince Gallery Tokyo Kioi and Akasaka Prince Classic House hotels.

The investment, totaling ¥27.10 billion, is expected to complete on July 30, 2026, and September 30, 2026. This transaction aims to maximize the value of the hotel assets and enhance the group's overall enterprise value through strategic asset management. The SPC, formed by Seibu Investment Advisory Co., Ltd., will manage the assets, while Blackstone Inc.-related funds and Tokyu Corporation also participate as co-investors.

The operation of the hotels remains with Seibu Hotels & Resorts Worldwide Co., Ltd. The deal aligns with Seibu Group’s long-term strategy outlined in “Seibu Group Long-Term Strategy 2035,” focusing on growth through capital recycling and leveraging real estate investments. Expected improvements include increasing individual guest ratios, enhancing operations at Bar Napoleon, and integrating asset management services to boost profitability.

In addition, Seibu plans to incorporate the acquired assets into a private equity real estate investment trust (REIT) by fiscal 2027, aiming to further capitalize on the properties' potential.