Global private equity firm KKR has acquired a Japanese real estate investment trust (REIT) previously owned by UBS Asset Management and the Mitsubishi Corporation (MC).
KKR has spent US$2 billion to purchase the fund from MC-UBSR, a joint venture between the Swiss fund manager’s real estate arm UBS Realty (UBSR) and the Japanese conglomerate.
MC-UBSR is one of the largest real estate managers in Japan with more than $15 billion in assets under management, including the $11 billion Tokyo Stock Exchange-listed Japan Metropolitan Fund.
The all cash deal expands KKR’s real estate business to $55 billion in AuM and boosts its presence in Japan.
“Japan is one of the most important and high-volume real estate markets in the world, and is a market we have been dedicated to investing in with a local team since 2006,” KKR Japan CEO Hiro Hirano.
The PE firm announced the $1.7 billion final closing of its first dedicated Asia real estate fund in early 2021.
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