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Real Estate Funds Sell Tokyo Westin to Singapore's Government Fund

The sale by Starwood Capital and Morgan Stanley is the second big property transaction to close in Tokyo this month, but hopes of a market revival could be premature

Singapore's Government Investment Corporation (GIC) Real Estate has acquired Tokyo's Westin Hotel, a 438-room five-star hotel in the upmarket Ebisu neighbourhood. GIC has bought the hotel from a special purpose vehicle owned 50-50 by real estate funds managed by Starwood Capital Group Global and a real estate fund managed by Morgan Stanley Real Estate. The press release issued yesterday did not give any pricing information, but according to a report in the Nikkei newspaper earlier this month, the consideration came to $719 million.

The deal comes just a week after the Germany-based Morgan Stanley real estate fund announced that it had bought the Citigroup Japan commercial and retail banking headquarters for $445 million.