Morrison & Foerster is representing Aetos Capital Real Estate on the sale of its Japan unit Simplex Investment Advisors to Tokyo-headquartered developer Hulic for about 155 billion yen ($1.3 billion).
The deal comes amid increasing interest in Japanese real estate, thanks to Prime Minister Shinzo Abe’s bold monetary expansion policies, which have decreased borrowing costs.
Morrison & Foerster corporate partners Randy Laxer and Mitsutoshi Uchida led a Tokyo-based team that handled all aspects of the transaction.
Hulic said in a statement that it intends to retain Simplex's five properties, which include office buildings in Tokyo and a hotel near Tokyo Disney Resort. Hulic, which has been adding to its acquisitions and growing its property development business in Japan, plans to sell two Simplex units – Simplex REIT Partners, which manages SIA Reit Inc, and fund management firm Simplex Real Estate Management – to Mizuho Trust & Banking.
The Simplex Investment Advisors transaction attracted bids from China's Anbang Insurance Co, as well as U.S. investment funds Elliot Management, Blackstone Group and Fortress Investment Group, according to sources cited in a Reuters report. Local property firms Kenedix and Mori Trust also joined the bid, sources said.
The Reuters report also said that Hulic had backed out after the final bids closed in August because Aetos wanted a higher price. However, Aetos asked Hulic to reconsider and agreed to sell Simplex at around 155 billion yen.
