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(Bloomberg) — Investment firms including Blackstone Inc. and Bain Capital have advanced to the second round of bidding for the real estate unit of Fuji Media Holdings Inc., people familiar with the matter said, in what’s likely to be Japan’s biggest-ever property deal.
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Japan’s Seibu Holdings Inc. and Canada’s BGO have also been shortlisted to the next phase to buy Sankei Building Co., the people said, asking not to be identified because the deliberations are private. Their planned bids are around ¥1 trillion ($6.3 billion), the people said. The second round is scheduled to finish in mid-September, during which time the finalists will conduct due diligence including assessing the value of the real estate assets, they said.
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Shares of Fuji Media jumped as much as 10% in Tokyo, before paring some gains. The stock has gained 34% in the past 12 months, giving it a market value of $4.3 billion.
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Some bidders may consider teaming up with other companies, including firms that didn’t participate in the first round, the people said.
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Tokyo’s real estate market has seen large transactions recently, with some deals exceeding ¥400 billion by investors such as KKR & Co. and Blackstone, but the potential ¥1 trillion price tag suggests this sale may eclipse them as Japan’s largest. The proposed sale reflects pressure that the Tokyo Stock Exchange and the government are putting on companies to improve corporate governance via measures such as selling off non-core assets.
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A representative for Bain declined to comment, while Fuji Media, Blackstone, Seibu and BGO didn’t respond to requests seeking comment.
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Sankei Building operates a wide range of real estate-related businesses through its subsidiaries, including office buildings, hotels, condominiums and rental apartments, logistics facilities, nursing care properties.
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—With assistance from Yui Hasebe.
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(Updates with share price reaction in third paragraph.)
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English (US)