Symphony International Holdings has entered into binding agreements to sell land at the Niseko ski resort, in Japan, and form a new joint venture to co-develop part of the land with Hanwha Hotels & Resorts.
As initally announced on 30 August 2019, Niseko Property Joint Venture (NPJV), which Symphony holds a 37.5% interest in, will sell approximately 31% of the development site to Hanwha with a further 39% to be sold to a new joint venture company that will be held equally by NPJV and Hanwha.
The transactions are scheduled to close at the beginning of April 2020. NPJV will retain the residual 30% of the development land site for future development or sale. Each part of the development land site has ski-in and ski-out access and will be developed independently under separate company participation structures.
NPJV’s development land site was acquired in stages between 2011 and 2012 and is located in the Hirafu area of Niseko that attracts visitors all-year-round. The agreed sale price implies a premium to the fair value that Symphony held its interest at 30 September 2019.
Anil Thadani, chairman of Symphony Asia Holdings Pte and a director of Symphony, said: “The realisation of part of our investment in Niseko reaffirms our investment thesis on growing demand for luxury real estate in Asia. Hanwha brings extensive property development experience to the new joint venture, which will allow us to unlock further value in the coming years.”
SIHL : Symphony sells Japanese ski resort land and will co-develop part of site with Hanwha Hotels