US private equity firm KKR & Co. Inc. is acquiring Mitsubishi Corp.-UBS Realty Inc for 230 billion yen (US$2 billion) from the joint venture partners, Japanese conglomerate Mitsubishi Corp and UBS Asset Management, the investment arm of Swiss investment bank UBS Group.
The deal creates “strong synergies” between both their real estate teams, KKR, Mitsubishi and the Swiss asset management firm say in a statement on March 17.
Mitsubishi owns 51% of the Tokyo-based joint venture and UBS Asset Management, 49%.
Mitsubishi Corp.-UBS Realty, which was formed in 2000, manages 1.7 trillion yen of property assets, including two locally listed real estate investment trusts, Japan Metropolitan Investment Corporation and Industrial Infrastructure Corporation.
“Mitsubishi Corp.-UBS Realty has an excellent track record of serving investors across its REIT offerings and a strong commitment to enhancing its investments through a strategic approach to environmental, social and governance,” KKR Japan Chief Executive Officer Hiro Hirano says in the statement.
The deal is expected to close in April 2022, subject to regulatory approvals.
New York-based KKR had $471 billion of assets as of December 2021.
