Japan’s Kintetsu to sell hotel portfolio to Blackstone as PE activity grows

Photo: Bloomberg

Japan’s Kintetsu Group Holdings will sell eight hotels to U.S. buyout firm Blackstone Group for an undisclosed amount, the railway operator said on Thursday, in the latest private equity deal.

Blackstone is part of a wave of foreign investors hunting for deals in Japan while banking on a rebound from the COVID-19 pandemic as companies shed non-core assets.

Japan “has seen its investment landscape transform over the years as corporations increasingly look to divest their non-core businesses with a trusted partner,” Chris Heady, Blackstone’s regional head of real estate, said in a statement.

In a filing, Kintetsu said it would continue to operate the hotels, which have a book value of 42 billion yen ($385 million) and are part of a portfolio of 24 hotels. The deal was worth 60 billion yen, the Nikkei business daily said.

The sale was spurred by cost-cutting during the pandemic, Kintetsu added, with Blackstone selected for its global real estate investing experience.

The Kintetsu deal is the third corporate carve-out for Blackstone, which last year invested a record $7.3 billion in Japan, including the purchase of Takeda’s over-the-counter drugs business.

As private equity activity grows in Japan, shareholders are increasingly challenging company managers in a shakeup of the traditional corporate order.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.