Lyf Ginza Tokyo, the 140-room coliving property was acquired by Invictus Developments, the Singapore-based family office of the Karim family for JPY10.5 billion (Photo: Invictus Developments)
Invictus Developments, the Singapore-based family office of Indonesian palm oil tycoon Bachtiar Karim, acquired lyf Ginza Tokyo for JPY10.5 billion (about $93.02 million) on October 4. JLL brokered the deal.
It marks the first acquisition in Japan by the property group headed by Karim's son, Chayadi, who founded Invictus Developments in 2018.
Since then, the real estate investment firm has over $500 million worth of assets under management, primarily in Singapore and Australia, namely Sydney and Brisbane.
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The 140-room lyf Ginza Tokyo opened as a co-living property in November 2023 and will continue to be managed by The Ascott even after the acquisition (All pictures by Invictus Developments)
"lyf Ginza Tokyo marks our inaugural acquisition in Japan," says Chayadi Karim, principal of Invictus Developments. "We anticipate this will be the first of many hotel acquisitions in Japan over the coming years. We remain optimistic about the Japanese hospitality market, driven by robust tourism growth and its status as a premier destination for all travellers."
Invictus acquired lyf Ginza Tokyo from Ascott Serviced Residence Global Fund, a private lodging fund under global real asset manager CapitaLand Investment (CLI). A co-living asset, the 140-room lyf Ginza Tokyo opened in November 2023. It will continue to be managed by The Ascott Limited, CLI's wholly-owned lodging business unit.
The latest acquisition in Singapore by Invictus Developments is the Bukit Timah Shopping Centre carpark which it purchased in mid-2024
Ascott Serviced Residence Global Fund is Ascott's private equity fund with Qatar Investment Authority, and it acquired the property in August 2022 before refurbishing it. "The divestment of lyf Ginza Tokyo marks our first deal with Invictus Developments," commented Mak Hoe Kit, managing director of lodging private equity funds, CapitaLand Investment.
"With its strong tourism sector, weak currency, and relatively low borrowing costs, Japan is an ideal investment destination for foreign investors," remarks Nihat Ercan, JLL’s CEO for Asia Pacific.
In Singapore, Invictus Developments acquired the 143-room The Standard, Singapore in 2019, which is scheduled to open by 4Q2024. It also acquired a row of nine shophouses along Desker Road and Rowell Road sometime in 2021-2022, which it has renamed The Rochor Collection. In 2022, Invictus Developments snapped up House of Tan Yeok Nee, gazetted a national monument and a corner building at 6 Hong Kong Street, which will be converted into a hotel. In 2023, it acquired the carpark of Bukit Timah Plaza, followed by the carpark of Bukit Timah Shopping Centre in the middle of 2024.
The 59-room Harbour Rocks, Sydney hotel was acquired by Invictus Developments in 2023
In Australia, properties include heritage boutique hotels acquired last year, such as the 59-room Harbour Rocks, the 69-room The Old Clare Hotel in Sydney, and The Inchcolm, a 50-room boutique hotel in Brisbane. Last year, Invictus also acquired a 132-unit Quest Woolloongabba apartment block in Brisbane and the former Bank of China headquarters in Sydney, which it intends to convert into a 152-room hotel.
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Invictus will continue to focus on hospitality investments in gateway markets across the Asia Pacific and expand its portfolio of "boutique, lifestyle, and upper upscale hotels in Singapore, Australia, and Japan", says Karim.