KKR and Asia‑based alternative investment firm PAG announced that they have signed definitive agreements to acquire 100 % of the shares of Sapporo Real Estate Co., Ltd. from Sapporo Holdings. The transaction values the real‑estate subsidiary at approximately ¥477 billion, or about $3.1 billion, and was signed on December 24, 2025.
The acquisition is structured as a phased purchase. The first tranche, representing a 51 % stake, is scheduled to close on June 1, 2026, with the remaining 49 % to be acquired over the next two years, completing the transaction in 2029. Sapporo Real Estate’s portfolio includes commercial, office, hotel, and residential assets, with key holdings such as Yebisu Garden Place in Ebisu, Tokyo, and properties in Sapporo.
Sapporo Holdings is divesting its real‑estate arm to sharpen focus on its core alcoholic‑beverage business. The sale frees capital and management attention for the beverage division, which faces increasing competition and activist investor pressure. By shedding a non‑core asset, the company aims to improve operational efficiency and unlock value for shareholders.
For KKR, the deal expands its Asia real‑estate platform, adding high‑quality assets to its portfolio and reinforcing its three‑pillar model of asset‑management fees, insurance capital, and strategic holdings. PAG brings deep regional expertise and a strong network in Japan, positioning the partnership to drive sustainable urban development and value creation across the portfolio.
KKR’s Hiro Hirano said, “We are pleased to collaborate with PAG to support the company’s next stage of growth, and look forward to sharing our global network, investment experience and deep operational expertise in development, operations, and hospitality.” PAG’s Jon‑Paul Toppino added, “We are proud to partner with KKR and Sapporo Holdings to support the management and staff of Sapporo Real Estate and the continued development of the Ebisu area. Working closely with the community, government, and tenants, we aim to continue the evolution of the company’s landmark properties as vibrant and sustainable urban destinations.”
The announcement was welcomed by investors, reflecting confidence in the strategic shift and the potential for value creation under the new ownership structure.
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