[SINGAPORE] Property developer OUE has formed a joint venture (JV) with Japanese non-banking financial services company Tokyo Century to develop the new 255-key hotel located at Changi Airport’s Terminal 2 (T2).
Under the JV, both will contribute capital to help fund the development of the project, Hotel Indigo Changi Airport. OUE Capital Management, the group’s wholly owned subsidiary, will be appointed as the hotel’s development and asset manager.
OUE will own a 51 per cent stake in another wholly owned subsidiary, RD Hotel Holdings, which will head the lease and development of the hotel. TC Realty, a wholly owned subsidiary of Tokyo Century, will own the remaining 49 per cent.
In a statement on Tuesday (Mar 25), OUE deputy chief executive officer and executive director Brian Riady said that the move is in line with the group’s “asset right” strategy to optimise capital deployment and grow its third-party funds under management over time.
He added: “It also paves the way for a strategic partnership between OUE and Tokyo Century to pursue future real estate opportunities in Singapore and beyond.”
The property developer noted that the Tokyo-listed company has been actively engaged in the hotel business since 2016. This includes the development and management of ANA InterContinental Beppu Resort & Spa in Oita prefecture and the upcoming luxury hotel Dorchester Collection in Tokyo.
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Yoichiro Nakai, Tokyo Century deputy president and executive officer, added that the company has expertise in solar-power generation and sustainable energy solutions, which will help to develop Hotel Indigo Changi Airport – Singapore’s first zero-energy hotel.
OUE was awarded the tender for the project in April 2024, with a 58-year strata sublease until Aug 29, 2083 – based on a handover date of no later than 12 months from the date the tender was awarded.
The hotel is expected to be completed and fully operational by 2028, said OUE. It does not expect the JV to have any material effect on the group’s net tangible assets or earnings per share for the current financial year ending Dec 31, 2025.
Shares of OUE closed flat at S$0.945 on Tuesday, before the announcement.
