SMFL MIRAI Partners, a subsidiary of Sumitomo Mitsui Finance and Leasing (SMFL), has taken full control of Japanese property funds manager Kenedix after acquiring the remaining 30% stake from ESR.
Kenedix manages a number of real estate funds, including J-REITs, private REITs and private funds with assets under management of more than JPY4.6trn (€27bn).
Stuart Gibson, co-founder and co-CEO of ESR, said: “We look forward to seeing the continued growth and success of the Kenedix business under the full ownership of SMFL Group.
“This transaction underscores the synergistic and long-standing relationship between ESR and the broader Sumitomo Mitsui Banking Corporation Group.”
Real assets manager ESR declined to provide financial details on the sale.
Gibson said the transaction enabled ESR to accelerate our strategic transformation by simplifying the business and recycling capital to drive value for its stakeholders.
This transaction follows ESR’s sale of the ARA Private Funds business to SMFL MIRAI Partners and Kenedix in 2024, in a deal that gave the business an enterprise value of US$270m (€229.7m).
In 2020, ARA Private Funds Management and SMFL participated in a US$1.3bn buyout of Kenedix, giving ARA 30% stake and SMFL the remaining 70% stake in the Tokyo-based real estate company.
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