Seibu Real Estate and Tokyo Century to Jointly Acquire Hotels at Tokyo Garden Terrace Kioicho
Seibu Real Estate Inc. will acquire The Prince Gallery Tokyo Kioicho and Akasaka Prince Classic House jointly with Tokyo Century Corporation on September 30, 2026. The acquisition will be made through an SPC formed by SEIBU REAL ESTATE ASSET MANAGEMENT INC., with the seller being Sakura Holding Tokutei Mokuteki Kaisha, funded by a Blackstone-affiliated fund.
The Seibu Group had sold the entire Tokyo Garden Terrace Kioicho complex to the same tokutei mokuteki kaisha for approximately JPY 400 billion in February 2025, and this transaction represents a reacquisition of the sectional ownership interests and co-ownership interests in the land relating to the hotel and banquet facilities. The total anonymous partnership investment in the SPC is JPY 27.1 billion, with Seibu Real Estate contributing 67% and Tokyo Century contributing 33%.
Hotel operations will continue to be handled by Seibu Prince Hotels Worldwide, Inc., with SEIBU REAL ESTATE ASSET MANAGEMENT INC. serving as asset manager.
Under the "Seibu Group Long-Term Strategy 2035" formulated in 2024, the Seibu Group has set a policy of investing approximately JPY 240 billion in new real estate acquisitions and other investments through fiscal 2035, and this transaction is part of that plan. As an exit strategy, the company anticipates incorporating the asset into a private REIT that Seibu Real Estate Investment Advisors plans to form during fiscal 2027, with the aim of making this asset its flagship property.
Key Facts
- Property Name: The Prince Gallery Tokyo Kioicho / Akasaka Prince Classic House
- Buyer: S.M.L. I LLC (jointly funded by Seibu Real Estate Inc. and Tokyo Century Corporation)
- Seller: Sakura Holding Tokutei Mokuteki Kaisha
- Acquisition Type: Trust beneficiary interest, etc., with sectional ownership interests and land co-ownership interests as the principal trust assets
- Total Anonymous Partnership Investment: JPY 27.1 billion
- Investment Ratio: Seibu Real Estate Inc. 67% / Tokyo Century Corporation 33%
- Location: 1-2 Kioicho, Chiyoda-ku, Tokyo, and vicinity
- Contract Date: July 29, 2026
- Scheduled Acquisition Date: September 30, 2026
- Acquisition Price: Undisclosed
- Hotel Operator: Seibu Prince Hotels Worldwide, Inc.
- Asset Manager: SEIBU REAL ESTATE ASSET MANAGEMENT INC.
- Building Manager: SEIBU REAL ESTATE BUILDING MANAGEMENT INC.
