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Business deals

KKR to buy Japanese real estate asset manager for $2bn

Acquisition of Mitsubishi Corp.-UBS Realty will deepen firm's Japan presence

KKR expands its business in Japan by buying real estate asset manager Mitsubishi Corp.-UBS Realty.   © Reuters

(Reuters) -- KKR & Co. said on Thursday it is buying Japanese real estate asset manager Mitsubishi Corp.-UBS Realty (MC-UBSR) for 230 billion yen ($1.94 billion), deepening the U.S. private equity firm's presence in Japan.

KKR will buy MC-UBSR from Mitsubishi Corp. and UBS Asset Management. MC-UBSR was founded in 2000 as a joint venture between the two companies, and is currently one of the largest real estate asset managers in Japan with 1.7 trillion yen in assets under management.

"Japan is one of the most important and high-volume real estate markets in the world, and is a market we have been dedicated to investing in with a local team since 2006," said Hiro Hirano, CEO of KKR Japan.

The all-cash deal is expected to be immediately accretive to KKR on a fee related earnings per share basis, the companies said in a joint statement.

The acquisition will expand KKR's $41 billion global real estate business to $55 billion.

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