TOKYO (Reuters) – Blackstone (NYSE:) said on Thursday it will acquire a luxury office building in central Tokyo for $2.6 billion, a deal it said is the largest real estate investment by a foreign investor in Japan.
The company will acquire the 36-storey Tokyo Garden Terrace Kioicho office and hotel complex from Japan’s Seibu Holdings in a bid to free up the railway and real estate company’s balance sheet.
The deal underlines the global demand for the Japanese commercial real estate market, which has low financing costs and stable rents.
Reuters reported in March that Seibu was considering selling the building for at least $2 billion.
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