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KK daVinci poised for $4.5bn sale

Tokyo-based KK daVinci is reportedly in talks to sell three prime offices in the city. A sale would come hot-on-the-heels of the firm’s $142 million divestment of the Lietocourt Arx residential tower to Kuwait’s St Martins Group.

Japanese private equity real estate firm KK daVinci is set to sell a trio of prime Tokyo office buildings as it seeks to repay its debts, according to a report by Reuters.

The report cites “people with direct knowledge of the deal” who said that KK daVinci, which is led by US educated Osamu Kaneko, was poised to agree the sale of Pacific Century Place, the Shiba Park Building and the Akasaka Kokusai building. The three properties were purchased for about $4.5 billion in 2006, the same year the firm launched the daVinci Fund IV, which closed on ¥320 billion ($3.128 billion) of equity commitments.

It is not yet clear who is to buy the assets and whether KK daVinci will be able to recoup the amount they paid, but the news of the sale saw shares in the Tokyo-listed firm rise by 15.6 percent to ¥2,965 early this week. According to Japanese analysts, shareholders were buoyed by the company’s commitments to repaying its debts, which include loans from lenders such as Chu Mitsui Trust Holdings and Merrill Lynch. However, today shares fell again to ¥2,520.

A sale would follow daVinci’s ¥13 billion sale of a luxury 27 storey high rise Lietocourt Arx residential tower in central Tokyo to Kuwait Investment Authority backed property investment company St Martins last month.