Japan Metropolitan Fund Investment Corp. To Acquire Apartment Hotel Property in Shinsaibashi
Japan Metropolitan Fund Investment Corp., a KKR-affiliated REIT in the U.S., will acquire Apartment Hotel 11 Shinsaibashi Amemura 2, an apartment hotel property in Nishi-Shinsaibashi 2-chome, Chuo Ward, Osaka, on June 29, 2026. The agreement was signed June 24, and the planned acquisition price is JPY 2.4 billion. The seller is undisclosed, but as of June 25, the registered owner was Pleasures Corp., an Osaka-based company engaged in hotel operations and real estate businesses.
The property was completed in 2014 and had been used as rental housing, but HIWIN, an integrated hospitality technology company selected by the REIT, began operating it in April 2026 under the Apartment Hotel 11 series. The first floor is retail space, while floors 2 through 10 consist of 58 rooms approved as special-zone private lodging units by Osaka City. The property is located a six-minute walk from Shinsaibashi Station and is near major tourist and retail areas in Osaka, including America-mura, Shinsaibashi-suji Shopping Street and Dotonbori. By leveraging the characteristics of private lodging, the property is intended to capture lodging demand from inbound travelers on extended stays, as well as groups and families.
The REIT positions the acquisition as a value-add investment aimed at generating a future gain on sale. For the private lodging portion, the lease structure includes percentage rent in addition to fixed rent, with percentage rent expected to account for about 35% of total rent. Assuming an exit cap rate of 4.1%, the projected IRR is approximately 11%, with an expected gain on sale of about JPY 500 million.
Key Facts
- Property Name: Apartment Hotel 11 Shinsaibashi Amemura 2
- Buyer: Japan Metropolitan Fund Investment Corp.
- Seller: Undisclosed (registered owner: Pleasures Corp.)
- Private Lodging Operator: HIWIN Inc.
- Planned Acquisition Price: JPY 2.4 billion
- Appraised Value: JPY 2.75 billion as of June 1, 2026, by CBRE K.K.
- NOI Yield: 5.1%
- Location: 2-18-13 Nishi-Shinsaibashi, Chuo Ward, Osaka, Osaka Prefecture
- Nearest Stations: Four-minute walk from Yotsubashi Station on the Osaka Metro Yotsubashi Line; six-minute walk from Shinsaibashi Station on the Osaka Metro Midosuji and Nagahori Tsurumi-ryokuchi lines
- Agreement Date: June 24, 2026
- Planned Acquisition Date: June 29, 2026
- Completion: March 2014
- Number of Floors: 10F; reinforced concrete structure
- Area: Site area of approximately 115 tsubo (approx. 4,100 sq. ft.); Gross Floor Area of approximately 576 tsubo (approx. 20,500 sq. ft.)
- Number of Guest Rooms: 58
- Number of Tenants: 1
- Main Tenant: Shinsaibashi Hospitality Management Inc. (HIWIN Inc. subleases the property from the company)
- Occupancy Rate: 95.8%
