Blackstone to pay $1B for Japan residential and commercial portfolio

Private equity giant has purchased $5.2B of assets in the country this year

Stephen Schwarzman and Tokyo (Getty, iStock)
Stephen Schwarzman and Tokyo (Getty, iStock)

Blackstone is picking up a portfolio of commercial and residential properties in Japan for the equivalent of $1.06 billion.

It’s the New York-based private equity firm’s fourth major real estate acquisition in Japan this year and brings its total acquisitions in the country to $5.2 billion, according to Mingtiandi.

Hong Kong-based fund PAG is on the other side of the deal, which closed around a month ago.

The portfolio consists mostly of properties in Tokyo and Osaka that PAG acquired in a $1 billion deal in 2015.

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That portfolio, PAG CEO Weijian Shan said, was “comprised of 26 high-quality properties” and was “predominantly office buildings in Tokyo.”

In March, Blackstone paid the equivalent of $2.7 billion for a portfolio of 220 rental properties, also concentrated between Tokyo and Osaka. It was a core-plus buy and Blackstone plans to increase rents and fill vacant units.

Then in July, the firm bought four warehouse properties from Daiwa House Industries. Around the same time the PAG deal closed, Blackstone agreed to buy the residential unit of Mitsukoshi Real Estate.

PAG recently allocated 840 billion yen for acquisitions in the country over the next four years, according to IPE Real Assets. [Mingtiandi] — Dennis Lynch