**KKR and PAG Acquire Sapporo Real Estate from Sapporo Holdings**
Funds managed by global investment firm KKR and Asian alternative investment manager PAG have entered into an agreement to acquire Sapporo Real Estate Co., Ltd. (SRE) from Sapporo Holdings Limited. The transaction will be led by KKR through its Asia-focused real estate strategy. The financial terms of the deal have not been disclosed.
The acquisition is set to be completed in phases over the next three years. The first phase, comprising a 51% ownership stake in SRE, is expected to close on June 1. A key objective of the phased approach is to ensure a smooth transition and continued operations across SRE’s primary locations, which include Ebisu in Tokyo and the city of Sapporo in Hokkaido.
Sapporo Holdings currently operates across three main business segments: alcoholic beverages, food and soft drinks, and real estate. The company’s real estate division emerged from the redevelopment of its former brewery sites in Ebisu and Sapporo. Moving forward, Sapporo Holdings aims to sharpen its focus on its core alcoholic beverage business.
SRE holds and manages a broad portfolio of commercial, office, hotel, and residential properties, predominantly located in its namesake cities. Under the new ownership of PAG and KKR, SRE will focus on sustainable growth and enhancing the long-term value of both its real estate holdings and corporate operations.
