Singapore real estate investment trust SC Capital Partners has acquired a 165-room hotel in Kagoshima, the provincial capital of the Japanese island of Kyushu, according to Deal Street Asia.
The former Hotel Gran Cerezo Kagoshima has been renamed the Hotel Oriental Express Kagoshima Tenmonkan, and it will be operated by SC Capital division Hotel Management Japan under hotel flag Oriental Express. That brand has an additional 22 hotels, with some internationally branded.
The hotel was built in 2017 and renovated in 2025. It's set to reopen April 15.
According to CoStar, SC Capital now has 40 hotels.
The price for this transaction is undisclosed, but the deal is part of SC Capital’s $1 billion Japan Hospitality Fund I, which closed in 2022. The seller is Japanese firm Kagoshima Ark City Co.
Fellow Singaporean investment firm CapitaLand Investment, listed on the Singapore Stock Exchange, acquired a 40% stake in privately held SC Capital in November. CapitaLand will acquire additional stakes in SC Capital to assume full ownership by 2030.
The 280 million Singapore dollar ($210 million) deal will see CapitaLand invest a further SG$524 million in the partnership to fund future acquisitions in hotels and other real-estate asset classes.
CapitaLand said it has assets under value of SG$11 billion.
SC Capital has raised additional funds, now six in total.
The latest, Real Estate Capital Asia Partners VI, closed in March a $900 million fund it said has already had $630 million earmarked, with more than $275 million of the total targeting assets in Japan.
In the past year, Japan has seen favorable inbound tourism numbers due to the weakened yen.
One of the fund's first acquisitions, in partnership with sovereign wealth fund Abu Dhabi Investment and private-equity firm Goldman Sachs Asset Management, was a part share in a $900 million deal for 27 hotels and 7,124 rooms in Japan from Daiwa House Industry in 2023.