July 8, 2017 1:31 am JST

Blackstone to buy Singapore-listed REIT

Croesus Retail Trust owns 11 commercial facilities in Japan

TOMOMI KIKUCHI, Nikkei staff writer

SINGAPORE -- U.S. investment fund Blackstone Group plans to acquire a Japan-focused real estate investment trust listed on the Singapore Exchange.

The REIT, Croesus Retail Trust, has a portfolio of 11 commercial facilities in Japan, including properties in Tokyo and neighboring Chiba Prefecture.

The U.S. private equity firm already made a proposal late last month to purchase Croesus for roughly $650 million. The acquisition will be carried out through an affiliate. Blackstone hopes to complete the deal and delist Croesus by the end of the year, pending approval from the REIT's existing investors.

Blackstone owns in 15 retail properties in Asia, including Singapore and Japan. Its real estate investments in Japan came to at least $3 billion as of the end of last year.

In April, Blackstone sold its interest in a commercial building in an upmarket residential area in Singapore to a local developer in what is believed to be a highly profitable transaction.

Croesus apparently believes this is an opportune time to cash in, as investment money is flooding into the Asian commercial real estate market. Blackstone's proposal presents a great opportunity for its existing investors, Croesus Chairman David Lim has been quoted as saying.

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