Blackstone is acquiring the Tokyo Garden Terrace Kioicho mixed-use complex in Japan from Seibu Holdings for around JPY4trn (€2.5bn).
The transaction, on behalf of Blackstone’s real estate funds, is the firm’s largest single investment to date across businesses in the market. It is also the largest real estate investment by a foreign investor in Japan.
The asset located in central Tokyo, consists of two high-rise towers – a Grade A office and a 135- high-residential tower -a 250-key luxury hotel and conference and wedding venues. The precinct is serviced by more than 30 cafes and restaurants, and goods and services stores.
Chris Heady, chairman of Asia Pacific and head of real estate Asia, Blackstone, said: “This is a landmark opportunity to acquire a trophy Tokyo asset from one of Japan’s most respected corporations, Seibu Holdings.”
Blackstone has built a diversified real estate portfolio in Japan across its global investment themes including hotels, rental housing, logistics, and data centres. It said that for more than 17 years, Blackstone had purchased businesses divested by Japanese companies, including the acquisition of an eight-hotel portfolio from Kintetsu Group and a logistics portfolio from Daiwa House.
Heady added: “Japan is one of our most important markets globally, where we have acquired $16bn (€15.2bn) of real estate assets since 2013. This transaction represents our conviction in Japan and the deep partnerships we’ve built with leading Japanese companies like Seibu.”
Daisuke Kitta, head of real estate Japan, Blackstone, said: “We are thrilled to partner with Seibu and add this prime, mixed-use property to our real estate portfolio in Japan. Japan has entered a new era of corporates seeking to partner with trusted groups like Blackstone to divest their assets for further growth.”
Ryuichiro Nishiyama, president and representative director, COO, Seibu Holdings, said: “Blackstone has provided a proposal that will contribute to further growth and development of the asset and a valuation that reflects its strength.
“In the future, the Seibu Group companies will continue to be involved in the management of the asset, which includes undertaking the asset management business and hotel management business.”
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