Japan’s Sapporo to sell real estate business to KKR-PAG group for 477 billion yen

[TOKYO] Japan’s Sapporo Holdings will sell its real estate business to a consortium led by private equity firms KKR and PAG for 477 billion yen (S$3.9 billion), Sapporo said in a release on Wednesday (Dec 24).

The deal marks the latest instance of Japanese firms offloading non-core assets and comes after a lengthy battle with activist investors including Singapore-based 3D Investment Partners, which has been pushing for the brewer to carve out its real estate business.

The KKR-PAG group will first acquire 51 per cent of the shares of Sapporo Real Estate by June 2026 before buying the remaining shares over the following three years.

Sapporo will use the cash for growth investments, paying down debt and shareholder distributions, it said in a document.

Real estate has become an increasingly popular target for investors in Japan as it emerges from deflation and interest rates remain low.

Sapporo Real Estate’s flagship asset is the Ebisu Garden Place mixed-use complex in Tokyo that contains offices, housing and retail space.

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KKR and PAG batted off competition from other funds including Bain Capital, Lone Star and Kenedix to emerge as the successful acquirer. REUTERS