Blackstone is set to take over Singapore REIT Croesus Retail Trust in a deal valued at S$900.6 million ($652 million; €572 million).
The New York-based firm has made an offer of S$1.17 in cash per unit, representing a 38 percent premium to the Japan-focused retail REIT’s 12-month volume weighted average price.
“Croesus Retail Trust has an established portfolio of quality Japanese retail assets. This transaction represents a good opportunity for Blackstone’s real estate business to further expand its platform in Japan and a chance to work together with the proven management team and staff at Croesus,” commented Chris Heady, senior managing director and head of real estate Asia at Blackstone.
Croesus’ total portfolio of 11 Japan assets is valued at approximately ¥112,640 million ($1 billion; €879 million) as at 30 June 2016. The properties have an aggregate net lettable area of approximately 4.6 million square feet and an average occupancy rate of 98.1 percent as at 30 June 2016.
“We are pleased to receive Blackstone’s proposal to privatize the trust by way of a trust scheme. After extensive deliberation of the proposed Scheme, we believe the Scheme provides an opportunity for our Unitholders to realize their investment for cash at a significant premium,” said David Lim, chairman and independent director of Croesus Retail Trust.
DBS Bank acted as the financial adviser to Blackstone on this transaction.
Blackstone currently manages $102 billion of equity for real estate investments. Since 2004, the firm has completed over 20 public company real estate acquisitions with a combined transaction value in excess of $110 billion.
The firm is also one of the largest retail owners in the world, with investments in 563 properties globally and 15 properties totaling 6.5 million square feet in Asia, as of 30 September 2016.