KKR has emerged as the frontrunner to acquire Nissan Motor’s global headquarters in Yokohama for approximately ¥90 billion ($610 million), according to people familiar with the matter, as the struggling automaker accelerates asset sales to shore up its deteriorating finances.
KJR Management, the private equity firm’s Japanese real estate unit, submitted the highest offer among multiple investment firms bidding for the 22-story office building. The proposed transaction includes a 10-year leaseback arrangement allowing Nissan to continue operating from the facility, the people said.
The headquarters sale represents another step in Nissan’s increasingly desperate effort to generate cash. The automaker faces $5.6 billion in debt obligations due next year and is forecasting operating losses of ¥180 billion for the April-September period. Company executives have privately acknowledged having just 12 to 14 months to survive without significant intervention.
Nissan expects to post a record net loss of around ¥700-750 billion ($4.9-5.3 billion) for the fiscal year ending March, driven by massive impairment charges and restructuring costs. The company has already announced plans to eliminate 20,000 jobs and reduce its manufacturing footprint from 17 to 10 sites globally.
Negotiations between KKR and Nissan remain ongoing, with no guarantee a deal will be completed. Both companies declined to comment on the matter.
The transaction would mark another significant Japanese investment for New York-based KKR, which completed a $4.4 billion acquisition of technology company Fuji Soft earlier this year.
