Buyout firm Bain to sell hotel assets in Japan REIT listing

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U.S. buyout firm Bain Capital is selling part of its Japan hotel assets through a real estate investment trust (REIT) initial public offering (IPO) in Tokyo that may raise nearly 20 billion yen ($190.35 million), sources familiar with the matter said.

Bain joins other property investors who are cashing in on investors’ demand for higher yields from REITs at a time of ultra-low and even negative rates in Japan.

The IPO, which will be managed by Nomura Holdings Inc and SMBC Nikko Securities, will be announced on Friday, one of the sources told Reuters.

Bain last year bought Japanese hotel and spa operator Ooedo Onsen Holdings, which operates 31 hotels and spa facilities nationwide, for about 50 billion yen ($475 million). Ooedo Onsen is best known for its spa on the man-made island of Odaiba in Tokyo Bay.

The buyout firm has set up a company called Ooedo Onsen Asset Management Co, which will operate a real estate investment trust named Ooedo Onsen REIT Investment, the sources said. The REIT will buy some of the properties from Ooedo Onsen Holdings, they said.

Officials from Bain Capital and Ooedo Onsen declined to comment. Ooedo Onsen REIT‘s IPO plan was earlier reported by the Nikkei business daily.

Japan‘s real estate investment trusts offer an average yield of 3.4 per cent, compared to the negative yield on a 10-year Japanese government bond. The Topix real estate index has risen 6.5 per cent so far this year, versus a 15.3 per cent decline in the Topix stock index over the same period.

The listing of Ooedo Onsen will follow Marimo Regional Revitalization REIT, which owns offices, hotels and retail facilities mostly in regional small cities. That REIT will start trading on Friday.

And Mitsui Fudosan Logistics Park, which owns warehouses, will start trading on Aug. 2. It was not immediately known when Ooedo Onsen REIT will begin trading on the stock market.

Also Read:

Bain Capital Ventures raises $600m to back tech startups

Nomura plans to dismiss 20% of North America staff

Japan’s SMBC Nikko sets up investment banking team in New York: CEO

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.