Blackstone Real Estate funds are buying a portfolio of eight hotels in Japan from railway holding company Kintetsu Group Holdings.
Financial details were undisclosed but Japanese media is reporting that the transaction was around 楼60bn (鈧�466m).
The hotels are located mostly in key tourist destinations, including Kyoto, Osaka, and Fukuoka as well as in the Greater Osaka and Nagoya regions.
Chris Heady, Blackstone chairman of Asia-Pacific and head of real estate, Asia, said: 鈥淭his is a unique opportunity that grants Blackstone access to a sizeable, high-quality hotel portfolio in Japan鈥檚 top hospitality markets.鈥�
He said the transaction marked Blackstone鈥檚 third corporate carve-out in Japan, a market that had seen its investment landscape transformed over the years as corporations increasingly looked to divest their non-core businesses to a trusted partner.
Blackstone鈥檚 head of real estate in Japan, Daisuke Kitta, said: 鈥淲e are very pleased that an established company like Kintetsu selected us as their partner in these marquee assets. 鈥�
Having established a strong relationship with the Kintetsu management team over the past few months, Kitta said, Blackstone looked forward to working closely with Kintetsu to further create value for the properties.
In its filing, Kintetsu said it would continue to operate the hotels. The group will continue to own 16 other hotels.
鈥淭his is also another step towards expanding our footprint in Japan and diversifying our portfolio,鈥� Kitta said, adding: 鈥淟ast year, we had a record year despite a challenging environment. Our real estate business invested US$5.2bn in 2020 in Japan alone.鈥�
Last year鈥檚 investments include the acquisition of a 楼110bn real estate portfolio, the buying back of some 220 residential apartment blocks for 楼300bn and the acquisition of four logistics assets for 楼55bn.
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