Fortress, Lone Star, Cerberus ‘expected to bid’ on $426m Japan portfolio

Private equity real estate firms are reportedly interested in bidding on a mixed real estate portfolio in Japan owned by Tokyo-listed bank Risa Partners.

Risa Partners, the Tokyo-based real estate focused bank recently acquired by NEC Capital Solutions, is to exit a portfolio of assets, reportedly valued at $426 million.

Citing sources, Reuters said the a first round of bidding for the assets, expected Monday 7 February, and that private equity real estate firms including Fortress, Lone Star and Cerberus were “expected” to take part.

The portfolio includes a mix real estate sectors including hotels, offices, retail and residential assets located across Japan. The assets are being marketed as a portfolio but it is also possible the assets could be sold separately.

Risa posted a -¥8.35 billion (€74.5 million; $100.8 million) net loss last November largely because of the poor performance of its real estate investments, the forecast of which saw its shares fall to a year low of ¥27,000, less than half their 12-month high.

Risa was established in 1998 originally to offer advice on due diligence services. It incorporated loan servicing into its business in 2001, through its IR Loan Servicing subsidiary, before launching a real estate investment arm in the same year. Two years later, Risa established a corporate restructuring fund with Hiroshima Bank as well as its own R-Fund real estate investment fund. Further joint ventures would follow, including a venture with Soros Fund.

The firm was listed on the junior Tokyo Stock Exchange in 2004 before graduating to the senior section  a year later. NEC Capital made its initial investment in Risa in 2009, before completing the acquisition at the end of last year in a deal valued at $195 million.