Wednesday, February 12, 2014

Cerberus Exits Kokusai Kogyo Investment

Cerberus Capital Management has exited one of its two remaining investments in Japan, a majority stake in property company Kokusai Kogyo.
The deal was valued at as much as ¥140 billion (€1 billion; $1.37 billion), according to media reports. Cerberus did not comment on the sale, but the reports have stated that the private equity firm has offloaded its remaining 55 percent stake in Kokusai to the company’s founding family. The price has been placed at between ¥130 billion and ¥140 billion.
Cerberus originally bought a 65 percent stake in Kokusai in 2004 for an undisclosed amount. It was also reported at the time that Cerberus bought approximately ¥500 billion in loans to the Japanese company for a 50 percent discount, from lenders including the UFJ Group, formerly Japan’s fourth largest bank that was bought by Mitsubishi Tokyo Financial Group in 2005. 
Cerberus does not have a dedicated real estate fund for Asia.
The Kokusai exit marks Cerberus’ second major exit in Japan in two years, after the firm reportedly raised about JPY 146 billion (€1.2 billion; $1.7 billion) by selling its shares in Japan’s Aozora Bank. 
Cerberus also sold out of its Japanese love hotel investments in 2013.
This exit leaves Cerberus with only one major investment in the Japan market: a one-third stake in railroad and hotel operator Seibu Holdings.


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