Hongkong Land eyes billion-dollar property deals, Blackstone asset, amid Japan push

[HONG KONG] One of Hong Kong’s biggest landlords is in talks to enter Japan’s resurgent property market as part of parent Jardine Matheson’s pivot towards becoming an investment firm, according to people familiar with the matter.

Hongkong Land is targeting deals over US$1 billion for mixed-use complexes with high-end office, retail and hospitality spaces in prime Tokyo locations, the people said, asking not to be identified discussing private matters.

But the company has struggled to secure the right property or a suitable co-investment partner at what remains a challenging time in Japan’s investment cycle, they said.

Hongkong Land has approached Blackstone and Hulic regarding their respective assets – Tokyo Garden Terrace Kioicho and Otemachi Place, some of the people said.

Both properties are centered around an office skyscraper in Tokyo’s central business districts and carry multibillion-dollar valuations, the people said.

It is not clear if the expression of interest in the properties went beyond that, the people added. Hongkong Land’s outreach on deals remain preliminary and may not eventually result in any partnership or deal, they said. 

Hongkong Land and Blackstone declined to comment. Hulic did not respond to a request for comment.

Japan entry marks Jardine pivot

A Japan entry would mark a major step in Jardine’s shift from a traditional conglomerate into a returns-focused portfolio manager.

The 194-year-old group has proposed more than US$10 billion in asset sales and mergers and acquisitions over the past year.

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While the group is expanding into developed Asian markets, it is not the most opportune time to enter Japan, where commercial property prices are near multi-decade highs.

Investment flows topped 1 trillion yen (US$6.3 billion) in the second-quarter for the first time since 2008, according to CBRE.

Overseas investors drawn by a weak yen and cheap borrowing have become more selective amid expectations of rising interest rates and thinner returns, CBRE said. 

Highlighting the challenges, Hongkong Land – which is the top landlord in the Asia financial hub’s central business district – earlier in 2026 opted not to proceed in a bid for Singapore sovereign wealth fund GIC’s stake in Tokyo office tower Pacific Century Place Marunouchi after failing to find partners, some of the people said.

GIC chose to work with Kenedix in the deal after the Japanese developer offered about US$1.4 billion, people familiar have said. 

Hongkong Land has netted US$3.7 billion from asset disposals since 2024, representing more than 90 per cent of its capital recycling target by the end of 2027.

That has helped reduce leverage to 11 per cent, with cash and equivalents surging 141 per cent to US$2.7 billion by the end of June from the year before, according to its earnings report.

Parent Jardine has already expanded into Australia, agreeing to buy diagnostic imaging provider I-MED Radiology Network for US$2.4 billion in May. The group is still eyeing more deals, people familiar with the matter said previously. BLOOMBERG