Blackstone said to plan $1.9 billion central Tokyo office sale
The New York-based alternative asset manager is negotiating with a potential buyer, according to sources.
Blackstone is reportedly planning to sell the office portion of Tokyo Garden Terrace Kioicho in central Tokyo for approximately $1.9 billion, based on sources familiar with the situation. The alternative asset manager from New York is in talks with a potential buyer, though the details remain private. The company is also exploring the idea of breaking up some of the property's beneficial interests into digital securities, which would allow smaller investors to purchase units, according to the sources.
This potential sale would occur roughly two years after Blackstone purchased the mixed-use complex in Tokyo's Chiyoda Ward from Seibu Holdings for around $1.9 billion, marking the largest real estate investment by a foreign entity in Japan at the time. The deal aimed to take advantage of the high demand for prime office space in Tokyo, where rental rates have surged to their highest since 2000 despite rising interest rates.
The 36-story Tokyo Garden Terrace Kioicho complex, completed in 2016, features offices, a hotel, residences, and retail space. Seibu Holdings has since acquired trust beneficiary rights to the hotel and other assets from Blackstone in a private placement.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
