Blackstone said on Thursday that it will acquire a high-end office building in central Tokyo for $2.6 billion, a deal it says is the biggest real estate investment by a foreign investor in Japan.
The firm will acquire the 36-storey Tokyo Garden Terrace Kioicho office and hotel complex from Japan’s Seibu Holdings in an effort to free up the railway and property firm’s balance sheet.
The deal highlights global demand for the Japanese commercial real estate market that has low borrowing costs and stable rents.
Reuters reported in March that Seibu was considering selling the building for at least $2 billion.
