Blackstone to Acquire Tokyo Garden Terrace Kioicho for $2.6 Billion, Marking Record Investment in Japan’s Real Estate Market
Blackstone (NYSE: BX), the world’s leading alternative investment firm, has announced a definitive agreement to acquire the Tokyo Garden Terrace Kioicho, a prestigious mixed-use development, from affiliates of Seibu Holdings. Valued at $2.6 billion (approximately JPY 400 billion), this transaction represents the largest real estate investment by a foreign investor in Japan and Blackstone’s largest investment in the country to date.
Located in the heart of Tokyo, Tokyo Garden Terrace Kioicho spans 2.4 million square feet and features two high-rise towers. The property includes a Grade A+ office building, which is fully occupied, 135 luxury residential units, a 250-key luxury hotel, event spaces for conferences and weddings, as well as over 30 cafes, restaurants, and retail outlets.
Chris Heady, Chairman of Asia Pacific and Head of Real Estate Asia at Blackstone, commented: “This acquisition presents a significant opportunity to acquire a premier Tokyo asset from one of Japan’s most respected companies, Seibu Holdings. Japan is a key market for us globally, and since 2013, we’ve invested $16 billion in real estate assets here. This deal underscores our confidence in Japan and the strong partnerships we’ve forged with leading Japanese companies like Seibu.”
Daisuke Kitta, Head of Real Estate Japan at Blackstone, added: “We are excited to collaborate with Seibu and integrate this exceptional mixed-use property into our portfolio. Japan is entering a new phase where corporations are looking to partner with trusted groups like Blackstone to divest assets for further growth. We remain committed to leveraging our local expertise and global platform to ensure the long-term success of this asset.”
Ryuichiro Nishiyama, President and COO of Seibu Holdings, said: “Blackstone’s proposal will contribute to the continued growth and value of the asset. We will remain involved in the management of the property, including asset and hotel management, and look forward to delivering even more value to Kioicho through our long-term partnership with Blackstone.”
Blackstone is a significant investor in Japan, having built a diversified real estate portfolio across various sectors, including hotels, rental housing, logistics, and data centers. Over the past 17 years, Blackstone has been a trusted partner to Japanese companies, supporting their asset divestitures for growth. Notable past acquisitions include an eight-hotel portfolio from Kintetsu Group, a logistics portfolio from Daiwa House, and private equity investments in Sony Payment Services, Alinamin Pharmaceutical (formerly Takeda Pharmaceutical’s consumer healthcare unit), and Infocom (formerly part of Teijin).
