Blackstone makes Japan’s biggest inward investment

Blackstone has agreed a deal to buy the 2.4m sq ft Tokyo Garden Terrace Kioicho from Seibu Holdings for $2.6bn (£2bn) in what will be the largest real estate investment by a foreign investor in Japan. Located in central Tokyo, Tokyo Garden Terrace Kioicho comprises two high-rise towers consisting of a grade-A+ office, which is 100% occupied, 135 luxury flats, a 250-bedroom hotel and more than 30 cafés and restaurants. Chris Heady, chairman of Asia Pacific and head of real estate Asia at 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 $16bn of real estate assets since 2013. This transaction represents our conviction in Japan and the deep partnerships we have built with leading Japanese companies.” Ryuichiro Nishiyama, president and chief operating officer at Seibu Holdings, 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.”