DP PROPERTIES INC., a Tokyo real estate subsidiary of MORGAN STANLEY & CO., will buy some 1,200 condominium units from DAIKYO INC. The 50 buildings containing the units, located in metropolitan areas across Japan, were built in 1992 and 1993. Unable to sell them, Japan's top condo builder has rented a reported 95 percent of the units. No contract price was disclosed, but industry sources estimate that Morgan Stanley is paying $108.5 million about 40 percent of the cost that Daikyo is carrying on its books. The condo builder will use the proceeds to pay down part of its huge debt. Rather than securitize them for sale to investors, DP Properties plans to hold onto the condos because of the strong cash flow they generate.
By the spring of 2000, Westin Hotels & Resorts will have five properties in Japan. The wholly owned operating subsidiary of STARWOOD HOTELS & RESORTS WORLDWIDE, INC. signed a franchise agreement with YUME BUTAI CO., LTD. for the Westin Awaji Island, Resort & Conference Center on Awaji Island off the coast of Kobe in the Inland Sea. The owner of the $139.5 million hotel which will have 201 guest rooms, an international conference center, five restaurants and lounges, banquet and wedding facilities, and retail shops is Hyogo prefecture along with 47 businesses. Westin Hotels & Resorts will support the hotel in the areas of sales and marketing, service standards, design and operations guidance. The hotel management arm of AOKI CORP., the Seattle-headquartered chain's former owner, will manage the property. The other Japan Westin hotels are located in Tokyo, Osaka, Kyoto and Nagoya.
An exchange rate of ¥129=$1.00 was used in this report.