Blackstone (NYSE: BX), the world’s leading alternative investment firm, today announced that Real Estate funds managed by Blackstone (“Blackstone”) have entered into definitive agreements to acquire Tokyo Garden Terrace Kioicho, an acclaimed 2.4 million square feet of mixed-use asset, from affiliates of Seibu Holdings. At $2.6 billion (around JPY 400 billion), this marks the largest real estate investment by a foreign investor in Japan and the firm’s largest investment to date across businesses in the market.
Located in central Tokyo, Tokyo Garden Terrace Kioicho comprises two high-rise towers consisting of a Grade A+ office, which is currently 100% occupied; 135 high-end residential units; a 250-key luxury hotel; conference and wedding venues; and over 30 cafes and restaurants, and goods and services stores.
Chris Heady, Chairman of Asia Pacific and Head of Real Estate Asia, Blackstone, said: “This is a landmark opportunity to acquire a trophy Tokyo asset from one of Japan’s most respected corporations, Seibu Holdings. 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.”
Daisuke Kitta, Head of Real Estate Japan, Blackstone, said: “We are thrilled to partner with Seibu and add this prime, mixed-use property to our real estate portfolio in Japan. Japan has entered a new era of corporates seeking to partner with trusted groups like Blackstone to divest their assets for further growth. We are committed to mobilizing our strong local teams with insights and relationships, and our global real estate platform, to continue to support this asset for long-term success.”
Ryuichiro Nishiyama, President and Representative Director, COO, Seibu Holdings, said: “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.”
Blackstone is a leading investor in Japan. The firm has built a diversified real estate portfolio in Japan across its global high conviction investment themes including hotels, rental housing, logistics, and data centers.
For more than 17 years, Blackstone has been a trusted partner to Japanese companies looking to divest their businesses and assets for continued growth. Its notable carve-outs include: the acquisition of an eight-hotel portfolio from Kintetsu Group and a logistics portfolio from Daiwa House; in private equity, investments in Sony Payment Services with Sony Group, the consumer healthcare unit (renamed Alinamin Pharmaceutical) from 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 US$325 billion of investor capital under management. Blackstone is the largest owner of commercial real estate globally, owning and operating assets across every major geography and sector, including logistics, data centers, residential, office and hospitality. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstone’s Core+ business invests in substantially stabilized real estate assets globally, through both institutional strategies and strategies tailored for income-focused individual investors including Blackstone Real Estate Income Trust, Inc. (BREIT). Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).
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