YTL REIT announced that its entity Starhill REIT Niseko G.K., a wholly-owned subsidiary of the manager is developing
a hotel in Aza-Soga, Niseko-cho, Abuta-gun, Hokkaido, Japan for an estimated total development cost of approximately JPY6.38 billion, equivalent to RM199 million.
The manager said it is developing a five-storey hotel with a two-storey basement under Moxy brand name which is a segment of Marriott’s millennial-focused brand (“Moxy Niseko”). Moxy Niseko is being developed on land owned by Starhill GK which is part of the land acquired by Starhill GK together with Hilton Niseko Village in 2011. Moxy Niseko will have 310 rooms and a gross floor area of approximately 10,354 square meters upon completion.
The total development Cost represents 3.9% of the audited consolidated total assets of YTL REIT for the financial year ended 30 June 2023 of RM5.1 billion which the company said is below the 15% permitted threshold for proposed development activities. The Proposed Development is to be funded via a combination of internally generated funds and borrowings.
The proposed development it said will facilitate utilisation of available space on existing land owned by the manager in Niseko Town, a famous skiing resort area in Japan, to can enhance the income derived from the land. Upon completion of Moxy Niseko will be leased to YTL Corporation Berhad group under a variable rental arrangement, allowing YTL REIT to
participate in the operating income generated from the resort which the manager said is expected to enhance the earnings and distributable income of YTL REIT
