Blackstone has announced a significant acquisition, agreeing to purchase a mixed-use property asset in central Tokyo from Seibu Holdings for $2.6 billion. The real estate funds under the management of this alternative asset strategist will take ownership of the Tokyo Garden Terrace Kioicho, an impressive complex spanning 2.4 million square feet that includes two high-rise towers featuring offices, residential units, a luxury hotel, shops, and various dining establishments. Daisuke Kitta, Blackstone's head of real estate for Japan, expressed excitement about the partnership with Seibu, stating, "We are thrilled to partner with Seibu and add this prime, mixed-use property to our real estate portfolio in Japan.
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." This transaction marks Blackstone's largest investment in the Japanese market to date. Since 2013, the firm has amassed an impressive $16 billion in real estate assets within the country.
Chris Heady, who leads real estate in Asia for Blackstone, highlighted the firm's robust investment strategy and commitment to Japan. Blackstone's extensive real estate portfolio in Japan already includes hotels, rental housing, logistics, and data centers. Noteworthy past transactions involve acquiring an eight-hotel portfolio from Kintetsu Group and investing in Sony’s payment services platform and Takeda Pharmaceutical’s consumer healthcare unit. Seibu's Chief Operating Officer, Ryuichiro Nishiyama, remarked on the strengths of the acquisition, saying, "Blackstone has provided a proposal that will contribute to further growth and development of the asset, and a valuation that reflects its strength.
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." In a report from October, Blackstone revealed that its real estate segment had experienced a modest 1% growth in third-quarter revenue, totaling $852.4 million.
The total assets under management in this segment summed up to $325.1 billion. Price: 189.89, Change: -2.52, Percent Change: -1.31..