Nomura Real Asset Investment and Nomura Real Estate Holdings announced that they have established a private real estate fund to invest in Centara Grand Hotel Osaka.

Nomura Real Asset will serve as the fund’s asset manager and oversee the acquisition and management of the property.

The transaction represents a significant milestone for Nomura Real Asset’s investment management platform. It also marks the expansion of its investment management activities to include hotel assets. 

Backed by the extensive know how and experienced personnel of Nomura Holdings and Nomura Real Estate Holdings, Nomura Real Asset currently manages private real estate funds with assets under management exceeding 140 billion yen.

It provides investment management services to domestic and overseas institutional investors and other clients, primarily focusing on core to value-add strategies. In light of market conditions and evolving investor needs, the company has been stepping up its efforts to identify and execute new investment opportunities.

Going forward, Nomura Real Asset will leverage Nomura Group’s extensive network and expertise to drive the development of private market products for individual investors. The company will also enhance its investment management capabilities to deliver investment opportunities that help clients grow their assets over the medium to long term.

Overview of the transaction

The newly established fund will acquire Centara Grand Hotel Osaka through Osaka Namba Investors GK (the buyer). The fund’s equity investors include an investment company funded by Nomura Holdings, as well as multiple institutional investors and other parties.

After the acquisition, Nomura Real Asset will work closely with the hotel operator to enhance profitability in line with market trends, while respecting the property’s brand value and service quality. 

Significance of the transaction

(1) Expansion of investment scope and real asset management capabilities

Hotels are an asset class that offer flexibility in responding to demand fluctuations as well as the potential to generate added value through effective operations. Through this transaction, Nomura Real Asset will expand its investment management scope to respond to the increasingly diverse needs of investors.

(2) Capturing Osaka’s growth as a tourist destination 

Given the competitive environment for hotels in large cities that serve both inbound and domestic guests, Nomura Real Asset aims to capture revenue opportunities by leveraging the property’s location, size, and facilities.