Blackstone has made an offer to buy a Japanese residential property specialist.
The investment manager鈥檚 offer for closed-end, Guernsey-registered Japan Residential Investment Company values the firm at 拢152.6m (鈧�215.5m).
Alan Miyasaki, director of Blackstone, said: 鈥淲e continue to believe in the Japanese residential sector.
鈥淭he offer represents an opportunity for Blackstone鈥檚 real estate business to gain further exposure to high quality and well-located residential assets in Tokyo and other major cities in Japan.鈥�
JRIC鈥檚 90,000sqm portfolio is mainly located in Tokyo鈥檚 wards.
Around 25% of its assets are in the city鈥檚 five central wards, with a further 30% in Tokyo鈥檚 23 wards.
The company also has assets in Osaka and Nagoya.
In an August fact sheet, the company said signs of rent growth were emerging, with rents in Tokyo鈥檚 23 wards increasing last year by 0.4%, the first year-on-year increase since the financial crisis.
鈥淚ncreased demand and a general scarcity of investment properties is compressing yields and putting upward pressure on asset prices,鈥� the company said.
According to JRIC, the price per square metre of new condominiums in Tokyo has risen 9% year on year.
Raymond Apsey, non-executive chairman at JRIC, said the company recommended Blackstone鈥檚 offer to shareholders and that it has also received a separate approach from a third party that may lead to an offer.
