KKR to buy Japanese real estate manager from Mitsubishi, UBS

KKR is buying a Japanese real estate asset manager from Mitsubishi Corporation and UBS Asset Management for JPY230bn (€1.73bn).

KKR said it has agreed to acquire Mitsubishi Corp-UBS Realty (MC-UBSR), a pioneer in the Japanese real estate investment trust (REIT) segment.

MC-UBSR, founded in 2000, is one of the largest real estate asset managers in Japan with JPY1.7trn in assets under management.

The business manages Tokyo Stock Exchange-listed REITs: Japan Metropolitan Fund Investment Corporation and Industrial & Infrastructure Fund Investment Corporation.

KKR said the acquisition of MC-UBSR deepens its presence in Japan and expands its $41bn (€35.4bn) global real estate business to $55bn.

Hiro Hirano, CEO of KKR Japan and co-head of Asia Pacific private equity at KKR, said: “Japan is one of the most important and high-volume real estate markets in the world, and is a market we have been dedicated to investing in with a local team since 2006.

“MC-UBSR has an excellent track record of serving investors across its REIT offerings and a strong commitment to enhancing its investments through a strategic approach to ESG.”

Katsuji Okamoto, president and CEO and representative director of MC-UBSR, said: “Mitsubishi and UBS-AM showed us unwavering support over the years, enabling MC-UBSR to become Japan’s outright top Japanese-REIT manager.”

“We are excited to welcome KKR, which brings significant resources and relationships to MC-UBSR.”

Takuya Kuga, group CEO-designate, urban development group of Mitsubishi, said: “We are pleased to have supported MC-UBSR’s development and operations over these past 20 years, and are proud to have grown MC-UBSR into Japan’s leading REIT manager.

“Mitsubishi continuously strives to optimise and strengthen its business portfolio, and will continue to expand its real estate development and asset management businesses in Japan.”

Suni Harford, president of UBS Asset Management, said: “We are confident that KKR is well placed to take this business forward and wish the MC-UBSR team every success for the future.

“The Japanese market remains a cornerstone of our Real Estate & Private Markets business in Asia Pacific, and we remain focused on serving the needs of our clients and capturing growth opportunities in this strategically important region.

“Through our rapidly growing real estate investment unit, UBS Japan Advisors, we will continue to advise our clients on Japanese property investments.”

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