Real estate funds managed by Blackstone (NYSE: BX) has paid $2.6 billion to acquire Tokyo Garden Terrace Kioicho, a 2.4 million-square-foot mixed-use property, from affiliates of Seibu Holdings.
The transaction is the largest real estate investment by a foreign investor in Japan and the firm’s largest investment to date across businesses in the market.
Tokyo Garden Terrace Kioicho consists of two high-rise towers consisting of 100% occupied office space, 135 high-end residential units, a 250-key luxury hotel with conference and wedding venues; and over 30 cafes, restaurants and retail stores.
“This is a landmark opportunity to acquire a trophy Tokyo asset from one of Japan’s most respected corporations, Seibu Holdings,” said Chris Heady, chairman of Asia Pacific and head of Real Estate Asia at Blackstone. “Japan is one of our most important markets globally, where we have acquired $16 billion 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.”
Ryuichiro Nishiyama, Seibu Holdings’ president, representative director and chief operating officer, added, “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 and will provide even more attractive new value in Kioicho based on a long-term and strong partnership with Blackstone.”
Photo: Kakidai / Wikimedia Commons
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