On November 20th, the Nikkei Shimbun reported that U.S. investment giant Blackstone has secured exclusive negotiation rights to acquire Tokyo Garden Terrace Kioicho, a landmark mixed-use complex developed by Seibu Holdings on the site of the former Akasaka Prince Hotel in Tokyo's Chiyoda Ward, sources revealed to the Nikkei on November 20.
Tokyo Garden Terrace Kioicho courtesy of Seibu Holdings website.
The sale, expected to exceed ¥400 billion, involves one of Tokyo’s most prominent redevelopments.
Opened in July 2016, Tokyo Garden Terrace Kioicho includes offices, luxury residences, and The Prince Gallery Tokyo Kioicho, the crown jewel of the Prince Hotel brand, occupying its upper floors.
Seibu Holdings has identified real estate as a core driver of its long-term growth strategy, announced earlier this year.
The company is transitioning from its traditional rental income model to a rotational business approach. This involves enhancing the value of its properties for sale and reinvesting the proceeds into new developments.
The company aims to finalize the sale of Tokyo Garden Terrace Kioicho by the end of the year. This move is part of Seibu’s broader asset monetization efforts.
Seibu Holdings’ shares are partially owned by Singapore-based 3D Investment Partners, which holds over a 5% stake. The fund has expressed its intent to make significant proposals to management or provide strategic advice when necessary.
Source:
Nikkei Shimbun (Japanese only; paywalled)
