KKR Expands Real Estate Footprints in Japanese Market – Acquires REIT Assets

  • KKR has acquired Mitsubishi Corp.-UBS Realty, a leading Japanese real estate asset manager
  • Transaction will result Real Estate Portfolio AUM of US$54 billion.

KKR has gained foothold in Japanese REIT market by completing acquisition of Mitsubishi Corp.-UBS Realty (MC-UBSR). MC-UBSR is a leading Japanese real estate asset manager and transaction involves purchasing all the shares of MC-UBSR by KKR. MC-UBSR was previously held jointly by by Mitsubishi Corporation and UBS Asset Management. Acquired entity will operate under the name i.e., KJR Management (KJRM) with immediate effect.

Transaction  also involves, KKR completing its acquisition in the units in the two funds managed by KJRM. These funds are Japan Metropolitan Fund Investment Corporation (JMF) and Industrial & Infrastructure Fund Investment Corporation (IIF).  Both the funds were previously held by Mitsubishi Corporation along with MC-UBSR. 

Post-acquisition, JMF and IIF will continue to pursue their existing strategies. Both Japanese REITs will be managed and supported by approximately 160 professionals who will continue their previous roles in MC-UBSR at the new entity i.e. KJRM.

CEO of KKR Japan, Mr Hiro Hirano welcomed the team to KKR. Mr Hirano is also Co-Head of Asia Pacific Private Equity. Mr Hirano said that MC-UBSR has built premier asset management platform in Japanese REIT market and KKR will support the growth and success of the acquired entity over a long-term horizon.

As a result of the deal KKR’s worldwide real estate business will gain scale in Japanese market, which is significant as well as strategic for KKR. The transaction will result in total assets under management of KKR’s global real estate assets to about US$54 billion.

Staff Galactik Views

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