10:57 AM EST, 12/12/2024 (MT Newswires) -- Blackstone (BX) said Thursday that it agreed to acquire a mixed-use property asset in central Tokyo from Japanese hotel and railway operator Seibu Holdings for $2.6 billion.

Real estate funds managed by the alternative asset manager will purchase Tokyo Garden Terrace Kioicho, a 2.4 million-square-foot complex, from affiliates of Seibu. The property is comprised of two high-rise towers that house offices, residential units, a luxury hotel, stores and restaurants.

"We are thrilled to partner with Seibu and add this prime, mixed-use property to our real estate portfolio in Japan," Blackstone's head of real estate for Japan, Daisuke Kitta, said in a statement. "We are committed to mobilizing our strong local teams with insights and relationships, and our global real estate platform, to continue to support this asset for long-term success."

The deal represents Blackstone's "largest" investment to date across businesses in the Japanese market, it said. The company has acquired $16 billion of real estate assets in the country since 2013, according to Chris Heady, head of real estate Asia at the asset manager.

Blackstone's real estate portfolio in Japan includes hotels, rental housing, logistics and data centers. The company's previous notable deals in the country include the acquisition of an eight-hotel portfolio from Kintetsu Group, as well as investments in Sony Group's (SONY) payment services platform and Takeda Pharmaceutical's consumer healthcare unit.

"Blackstone has provided a proposal that will contribute to further growth and development of the asset, and a valuation that reflects its strength," Seibu Chief Operating Officer Ryuichiro Nishiyama said. "The Seibu Group companies will continue to be involved in the management of the asset, which includes undertaking the asset management business and hotel management business."

In October, Blackstone reported that third-quarter revenue in its real estate segment ticked up 1% to $852.4 million. Total assets under management in the segment amounted to $325.1 billion.

Price: 189.89, Change: -2.52, Percent Change: -1.31