Sapporo to sell real estate business for $2.6 billion to KKR-led consortium: NHK

Japan’s Sapporo Holdings plans to sell its real estate business to a consortium led by private equity firm KKR for 400 billion yen ($2.6 billion). public broadcaster NHK It was reported on Wednesday.

According to a Google translation of the article in Japanese, NHK said Sapporo, known for its beer-making business, is considering concentrating management resources on its core activities and that NHK is “negotiating prices and terms with several investment funds and others.”

Sapporo’s real estate assets include the Yebisu Brewery, as well as Yebisu Garden Place in Tokyo, a popular tourist destination. fine dining and shopping options.

The investment consortium includes KKR and Asia-based investment company PAG; NHK reported that the PE buyout fund plans to increase property profits by attracting new tenants to Yebisu Garden Place.

It is also expected that redevelopment of the venue will be considered in the future.

Meanwhile, Sapporo plans to use the funds from the sale to invest in its beer business and other areas and increase its core corporate value.

SapporoKKR, whose shares gained 2.86% following the announcement, did not immediately respond to CNBC’s request for comment.

This is not Sapporo’s first attempt to transfer its real estate business to a consortium. in October, Nikkei reported that the company granted KKR and PAG preferential negotiating rights but ended private talks next month.

The two parties were unable to agree on the sale price of the real estate business because properties in the portfolio “required significant and costly repairs due to aging facilities and the implementation of necessary safety measures,” the report said.

At the time, Sapporo had opened the sale to other buyers and was reportedly approaching a consortium of private equity funds Lone Star Funds and real estate fund manager Kenedix.

Read the full NHK story Here.