Red Planet Japan enters sale-and-leaseback deal with Goldman Sachs

Red Planet Japan, subsidiary of Bangkok-based budget chain Red Planet Hotels, has announced a 11.8 billion yen (US$110 million) sale-and-leaseback transaction with Goldman Sachs.

The transaction includes Red Planet’s hotels in Asakusa, Naha and Nagoya as well as a forward purchase of the Susukino Central development project in Sapporo, resulting in gains of nearly 2.6 billion yen.

Under the terms of the transaction, Red Planet has sold ownership rights to the four hotels and simultaneously entered into a lease-and-operate agreement with Goldman Sachs for an initial period of 20 years.

“We anticipate a long and fruitful relationship with Goldman Sachs over the coming years as we recycle capital at competitive cap rates,” remarked Yoshi Ikurumi, CFO, Red Planet Japan.

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