The global investment firm KKR has partnered with the Asia-based alternative investment firm PAG to acquire Sapporo Real Estate Co. Ltd. from the Japanese corporation Sapporo Holdings Ltd. in a deal valued at $3 billion.
According to the companies, the acquisition will close in stages over three years, with the acquisition of the first tranche, representing a 51% stake, expected to close on June 1, 2026, to facilitate a smooth handover across all locations including Ebisu, Tokyo, and Sapporo.
Sapporo Real Estate owns, operates, and develops a diverse portfolio of commercial, office, hotel, and residential assets primarily located in Ebisu, and Sapporo. Following the transaction, Sapporo Real Estate will become an independent company.
Sapporo Holdings manages three main business verticals and group companies in the alcoholic beverages, food and soft drinks, and real estate sectors. With the divesting of its real estate business, the company will now focus on growth initiatives within its alcoholic beverages business.
Hiro Hirano, deputy executive chairman of KKR Asia Pacific and CEO of KKR Japan, stated, “We are proud to deepen our relationship with Sapporo Holdings, a longstanding institution that continues to play a vital role in Japan’s business and cultural landscape, through our strategic partnership with Sapporo Real Estate. Over the past three decades, Sapporo Real Estate has established itself as a top developer, with a strong track record of landmark projects such as Yebisu Garden Place, one of Japan’s most prominent mixed-use projects today. We are pleased to collaborate with PAG to support the Company’s next stage of growth, and look forward to sharing our global network, investment experience and deep operational expertise in development, operations, and hospitality across KKR’s global platform.”
Jon-Paul Toppino, co-founder and president of PAG, adde: “PAG is proud to strategically partner with KKR and Sapporo Holdings to support the management and staff of Sapporo Real Estate and the continued development of the Ebisu area. Working closely with the community, government, and tenants, we aim to continue the evolution of the company’s landmark properties as vibrant and sustainable urban destinations.”
