By Megan Cheah
A consortium led by KKR and PAG has agreed to acquire Sapporo Holdings’ real-estate subsidiary valued at about $3 billion, as the Japanese beer maker seeks to streamline its business.
The deal to buy Sapporo Real Estate will close in stages over three years, with the first tranche of a 51% stake expected to close next June, the companies said in a joint statement Wednesday.
The transaction has an enterprise value of 477 billion yen, equivalent to $3.05 billion, including debt, Sapporo Holdings said in a separate disclosure.
Sapporo’s real-estate business owns a portfolio of commercial, office, hotel and residential assets located primarily in Ebisu in Tokyo and Sapporo.
The Tokyo-based company said the sale is part of its strategy to focus on alcoholic beverages, with the proceeds to be invested in growing its business.
Sapporo Real Estate will be an independent company following the deal’s completion, according to the statement. The company intends to “pursue the sustainable enhancement of its real estate and corporate value over the medium-to-long term” under new owners PAG and KKR.
Sapporo Real Estate has a strong track record of projects including Yebisu Garden Place, a prominent Japanese mixed-use development, said Hiro Hirano, deputy executive chair of KKR Asia-Pacific and chief executive of KKR Japan.
“Working closely with the community, government, and tenants, we aim to continue the evolution of the company’s landmark properties as vibrant and sustainable urban destinations,” said Jon-Paul Toppino, co-founder and president of PAG, which has offices in Asia-Pacific, London and New York.
New York-based KKR is making its investment largely through its Asia real-estate strategy. The deal is subject to regulatory approval.
Sapporo Holdings’ Tokyo-listed shares rose as much as 5.0% on Wednesday before closing 3.65% higher at 8,092 yen.
Private-equity firms have been snapping up Japanese assets as corporations in the country become more open to foreign partners. These partnerships usually entail taking businesses private or spinning off noncore assets.
That trend is being driven in part by the Japanese government’s push to get companies to boost their share prices and operational efficiency. Investors have also been demanding better governance and returns.
Earlier in December, Carlyle Group launched an around $927 million tender offer for surgical-kit maker Hogy Medical. In the same month, activist investor Elliott Investment Management confirmed it had built a 5.0% stake in auto-parts and forklift maker Toyota Industries.
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
December 24, 2025 03:00 ET (08:00 GMT)
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