Blackstone Announces Acquisition of Tokyo Garden Terrace Kioicho, Japan’s Largest Foreign Real Estate Investment By Investing.com

TOKYO–( BUSINESS WIRE )–Blackstone (NISE: BKS ), a leading global alternative investment company, today announced that funds managed by Blackstone (NISE: ) (Blackstone) have entered into definitive agreements to purchase Tokyo Garden Terrace Kioicho, received 2 ,4 million square meters of mixed-use property, from a branch of Seibu Holdings. At $2.6 billion (about 400 billion JPI), this is the largest real estate investment by a foreign investor in Japan and the company’s largest investment to date across all businesses in the market.

Located in central Tokyo, Tokio Garden Terrace Kioicho consists of two high-rise towers consisting of an A+ grade office, which is currently 100% occupied; 135 premium residential units; luxury hotel with 250 keys; conference and wedding venues; and over 30 cafes and restaurants and shops of goods and services.

Chris Headey, Asia Pacific President and Head of Asia Real Estate, Blackstone, said: This is an exceptional opportunity to purchase a trophy property in Tokyo from one of Japan’s most respected corporations, Seibu Holdings. Japan is one of our most important global markets, where we have acquired $16 billion worth of assets since 2013. This transaction represents our confidence in Japan and the deep partnership we have built with leading Japanese companies such as Seibu.

Daisuke Kitta, Head of Real Estate Japan, Blackstone, said: We are delighted to partner with Seibu and add this premium, mixed-use property to our real estate portfolio in Japan. Japan has entered a new era of companies looking to partner with trusted groups like Blackstone to offload their assets for further growth. We are committed to mobilizing our strong local teams with insights and relationships, as well as our global real estate platform, to continue to support this vehicle for long-term success.

Ryuichiro Nishiyama, President and Representative Director, COO, Seibu Holdings, said: Blackstone has made a proposal that will contribute to the further growth and development of the property, as well as a valuation that reflects its strength. In the future, Seibu Group companies will continue to be involved in property management, which includes undertaking property management and hotel management businesses, and will provide even more attractive new value to Kioicho based on a long-term and strong partnership with Blackstone.

Blackstone is a leading investor in Japan. The company has built a diversified real estate portfolio in Japan through its high-conviction global investment themes, including hotels, rental apartments, logistics and data centers.

For more than 17 years, Blackstone has been a trusted partner to Japanese companies looking to free up their operations and assets for continued growth. Its notable divestitures include: the acquisition of an eight-hotel portfolio from Kintetsu Group and a logistics portfolio from Daiva House; in private capital, investments in Sony (NOT:) Payment services with Sony Group, Consumer Healthcare Unit (renamed Alinamin Pharmaceutical (TADAVUL:)) of Takeda Pharmaceutical and Infocom from Teijin.

Blackstone Real Estate

Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $325 billion in investment capital under management. Blackstone is the largest owner of commercial real estate globally, owning and managing assets in all major geographies and sectors, including logistics, data centers, residential, office and hospitality facilities. Our opportunistic funds seek to acquire under-managed, well-located assets around the world. Blackstone’s Core+ business invests in substantially stabilized real estate assets globally, both through institutional strategies and strategies tailored to income-focused individual investors, including Blackstone Real Estate Income Trust, Inc. (BREIT). Blackstone Real Estate also operates one of the world’s leading real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including managing Blackstone Mortgage Trust (NOT: NOT:).

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Source: Blackstone