Sapporo Holdings agreed to sell its property business to a consortium of KKR and PAG in a deal valued at ¥477 billion ($3.1 billion), marking Japan’s latest major corporate divestiture to private equity buyers.
The transaction will close in three stages through 2029, with the first tranche transferring 51% of Sapporo Real Estate to the buyers by June 2026. The Japanese brewer expects to book accounting gains of approximately ¥330 billion ($2.1 billion) when it loses control of the subsidiary next year.
Sapporo said it would retain a 30% stake in Yebisu Garden Place, the Tokyo mixed-use complex built on its former brewery site, along with Ginza Place and part of Sapporo Garden Park. The company plans to rename itself Sapporo Breweries Ltd. in July 2026 as it pivots toward its core drinks business.
The disposal prompted a revision to annual forecasts, with revenue now projected at ¥501.8 billion versus the previous ¥523 billion target. Core operating profit guidance dropped 24% to ¥22.5 billion after the real estate segment was reclassified as a discontinued operation.
Proceeds will be directed toward growth investments of ¥300-400 billion ($1.9-2.6 billion) in alcoholic beverages, ¥100 billion in debt repayment, and shareholder returns through 2030. Negotiations had reportedly stalled earlier this year over concerns about aging facilities and repair costs before reaching final terms.
