The Canada Pension Plan Investment Board and Singapore-based real estate investment manager SC Capital Partners Group have agreed to invest up to US$719 million in Japan’s hospitality sector

The partners are investing the funds through SC Capital’s value-add strategy.

Building on its established track record, the strategy continues to acquire, reposition and operate hospitality-related investments across Japan, said the partners in a news release. The latest capital commitment is backed by a consortium comprising CPPIB and an existing global institutional investor that has been investing in the strategy since 2022.

Together, the investors have made an initial commitment of up to US$330 million, with capacity to increase total commitments to up to US$719 million. CPPIB will invest up to US$162 million as part of the initial commitment.

The partnership reflects investor confidence in Japan’s hospitality sector, supported by a recovery in inbound tourism, supportive government initiatives and resilient domestic demand, said CPPIB. SC Capital will draw on its local market expertise and on-the-ground presence to pursue opportunities in an increasingly competitive hospitality landscape.

“Japan remains one of the most attractive hospitality markets in Asia, and competition has intensified meaningfully with the influx of global institutional capital,” said Suchad Chiaranussati, chairman and founder of SC Capital. “In this environment, strong local networks, disciplined underwriting, and robust on-the-ground execution are the critical differentiators for dealmaking. Hospitality is well-positioned to be among the most rewarding sectors over the next year, supported by flexible pricing dynamics that enable efficient repricing. Leveraging more than two decades of experience and our deep local presence in Japan, we are well-placed to continue delivering long-term value for our investors.”

Gilles Chow, CPPIB’s head of Asia-Pacific real estate, said Japan stands out as one of Asia’s most attractive hospitality markets while being driven by robust growth in inbound tourism and sustained domestic demand.

“This partnership gives us access to high-quality opportunities and the execution capabilities to convert these tailwinds into long-term value for CPP contributors and beneficiaries,” said Chow.

SC Capital Partners is a Singapore-headquartered Asia-Pacific real estate investment manager founded in 2004, with a strong focus on Japan and deep expertise in hospitality investments.

Image: The SC Capital Partners-owned Grand Mercure Okinawa Cape Zanpa Resort in Yomitan, Japan.

Photo: SC Capital Partners