Salter Brothers Partners With Tokyo Century for Changi Airport Hotel

Australia’s Salter Brothers has partnered with Tokyo Century as the investment manager for the Japanese builder’s joint venture development of Hotel Indigo Changi Airport with OUE Ltd.

OUE, the SGX-listed developer controlled by the Riady family behind Indonesia’s Lippo Group, won a tender last April for the development and lease of the new hotel at the Singapore airfield’s Terminal 2. Tokyo Century announced its entry into the JV with OUE on Tuesday, marking the company’s first real estate investment in Singapore.

Salter Brothers previously teamed with Tokyo Century on a partnership that saw the Australian fund manager take over asset management last year for a five-star resort in the southern island of Kyushu. The latest tie-up furthers Salter Brothers’ commitment to premium hospitality investments in key gateway cities, the Melbourne-based firm said Thursday in a release.

“This partnership aligns with our strategic plans to invest in high-quality hospitality assets that are distinctly positioned and offer strong growth potential,” said Salter Brothers managing director Paul Salter. “Singapore continues to be a key market for us.”

Landmark Adds to Footprint

The proposed 255-key Hotel Indigo Changi Airport is envisioned as the city-state’s first zero-energy hotel, achieving operational neutrality through features like solar photovoltaic panels, hybrid cooling systems, naturally ventilated corridors and rainwater harvesting.

Stretching 163 metres (178 yards) lengthwise, the hotel is planned to include a rooftop day club, bar and infinity pool with panoramic views of the runway, airport boulevard and skyline. The project is expected to be completed and fully operational by 2028.

OUE was granted a strata sublease until 29 August 2083, based on a handover date of no later than 12 months from the date of the tender award.

Tokyo Century deputy president Yoichiro Nakai said the development reflects the Japanese builder’s continued commitment to expanding its hospitality footprint in dynamic and high-growth markets.

“We look forward to working closely with our esteemed partners to create a landmark property that embodies excellence and innovation,” Nakai said.

Star Refi Proposal

Salter Brothers, which has been gearing up for an Asia Pacific hotel IPO, was revealed earlier this month to be one of several firms seeking to extend a lifeline to troubled Star Entertainment after the ASX-listed casino group said its available cash fell 47 percent to A$79 million ($49 million) in the three months to 31 December.

A refinancing proposal made by the Salter Brothers Capital division could potentially provide debt capacity of up to A$940 million ($590 million) for the Brisbane-based operator.

Star granted a period of exclusivity until 18 March for Salter Brothers to conduct due diligence, with the agreement following closely on the disposal of Star’s half-stake in the Queen’s Wharf Brisbane complex to Hong Kong investors Chow Tai Fook Enterprises and Far East Consortium.