Singapore-listed Frasers Hospitality Trust has announced asset enhancement initiatives (AEIs) of up to JPY4.25 billion (SGD53 million, or USD37 million) for the retail component of ANA Crowne Plaza Kobe.
The component currently comprises over 70 retail and dining outlets, a supermarket and a performing theatre, but the trust describes the property as one with “cash flows and performance” that “have yet to stabilise”.
The AEIs will be undertaken and financed by retail component’s master lessee, Y. K. Toranomom Properties (YKTP), a wholly owned subsidiary of TCC group, and as such, Frasers Hospitality Trust will incur no immediate capital outlay for the works.
Frasers Hospitality Trust has described the AEIs as one that is in line with its plan to renovate and rejuvenate the hotel component of ANA Crowne Plaza Kobe, and position the property for an anticipated rise in visitor arrivals.
Works that will be carried in the AEIs include replacement of mechanical and electrical equipment, installation of additional escalators, and refurbishment of interior furnishings and restrooms.
“With the upcoming 2020 Olympics and the Japanese government easing visa restrictions to attract more tourists to the country, the rising international and domestic tourist arrivals will bode well for the tourism and retail markets in Kobe City”, said the trust.
Units of Frasers Hospitality Trust last changed hands on the Singapore Exchange at SGD0.69.