Blackstone and Bain Capital are among the firms to have advanced to the second round of bidding for Fuji Media Holdings’ real estate subsidiary, Sankei Building, according to a report by Bloomberg.
Seibu Holdings and Canadian real estate investor BGO have also reportedly progressed to the next stage of the process, with indicative valuations reported to be around ¥1tn ($6.3bn). If completed at that level, the transaction would be the largest in Japan’s history.
The second round of the sale process is expected to conclude in mid-September, during which shortlisted bidders will undertake due diligence, including assessing the underlying value of Sankei Building’s portfolio.
Sankei Building operates across multiple property segments including offices, hotels, residential assets, logistics facilities and nursing care properties. Given the breadth of the platform, bidders may seek partnerships with specialist developers as the process advances.
The proposed disposal comes amid continued pressure on Japanese corporates to improve capital efficiency and unlock value from non-core assets. Fuji Media has faced calls from shareholders for stronger governance measures, including separating its real estate operations and improving shareholder returns.
