NUMBER OF THE DAY
U.S. investment giant KKR is spending that amount on 14 Fuji Soft office towers.
It’s the largest deal so far in Japan’s REIT market in 2025, following a six-month bidding battle with Bain Capital.
🏢 Property Arbitrage: After the purchase, KKR immediately shifted the towers into its own REIT — locking in a safe profit with 4.7% yields against just 4.1% capital costs. While Bain could only resell to third parties, KKR played both sides of the deal.
💡 Rental Innovation: Japan Metropolitan Fund, a REIT under KKR, secured Japan’s first market-based rent adjustment clause — instead of tying rents to inflation, they now track actual office market prices.
No wonder 90% of J-REITs are trading below book value: investors can smell when sponsors are playing Monopoly with themselves.
Watch: The sale-and-leaseback gives Fuji Soft fresh cash for tech investments. The trick works so well, KKR has already pulled it off twice.
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