Sapporo Holdings has tapped investment firms KKR and PAG for exclusive negotiations to acquire its real estate division for roughly ¥400 billion ($2.7 billion), Nikkei reported. The Japanese brewer aims to complete the transaction by mid-November.
The deal would transfer ownership of Sapporo Real Estate, a wholly owned subsidiary that controls Yebisu Garden Place, a sprawling commercial complex in Tokyo’s Shibuya district that houses offices, apartments and retail space. The unit also manages additional office towers and residential buildings across Japan.
KKR and PAG emerged victorious from a competitive process that attracted more than 10 initial bidders, with three groups advancing to second-round bids in August. Rivals Lone Star partnered with Kenedix, while Bain Capital teamed with Tokyu Fudosan. Mitsubishi Estate withdrew from consideration.
The sale comes after sustained pressure from Singapore-based activist investor 3D Investment Partners, which has criticized the company’s management and urged it to shed non-core assets. 3D argued that the brewer neglected its alcoholic beverage operations while building out property holdings.
Sapporo plans to redeploy proceeds from the sale into its drinks business, marking a retreat from real estate after years of expansion in the sector. The company had previously committed to bringing in external capital and separating the property operations from its consolidated accounts.
