Blackstone to Buy Retail REIT for $650M

The group is expanding its footprint in Asia with the acquisition of Croesus Retail Trust, which owns a portfolio of 11 shopping malls in Japan.

The Blackstone Group’s footprint in Asia is poised to increase by 4.6 million square feet. Blackstone Real Estate has entered into an agreement to acquire all the issued units in Singapore-based Croesus Retail Trust, a retail REIT with a portfolio of 11 shopping malls in Japan, for S$900.6 million, or roughly $650 million.

Mallage Shobu, Kuki, Japan
Mallage Shobu, Kuki, Japan

Per terms of the agreement, Blackstone will pay S$1.17 in cash per unit for approximately 769.7 million issued units. “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,” Christopher Heady, senior managing director & head of real estate, Asia, with The Blackstone Group, said in a prepared statement.

Croesus’s portfolio

Croesus’s collection of retail properties consists of Aeon Town Moriya, Aeon Town Suzuka, Croesus Shinsaibashi, Croesus Tachikawa, Feeeal Asahikawa, Fuji Grand Natalie, Luz Omori, Mallage Saga, Mallage Shobu, One’s Mall and Torius. Five of the assets are located in metropolitan Tokyo.

The acquisition, which will be executed through a trust scheme in accordance with Singapore’s M&A regulations, is on track to close in the fourth quarter of 2017, pending unitholder approval and court sanction. The transaction will significantly enhance Blackstone’s retail presence in Asia, where it owned 15 properties totaling 6.5 million square feet, as of September 30, 2016. The institutional real estate investor’s global retail portfolio spans 82 million square feet.

Blackstone’s expansion

Blackstone’s added a couple of real estate companies to its holdings this year. The investor purchased Germany’s OfficeFirst Immobilien AG and its portfolio of 100 properties, and snapped up a majority interest in flexible office space provider The Office Group, which boasts 36 buildings located predominantly in central London. 

Image courtesy of Croesus Retail Trust