Goldman Sachs a final bidder for $1.6 billion Tokyo building: sources

Wed Aug 13, 2014 6:43am EDT
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By Junko Fujita

TOKYO (Reuters) - A Goldman Sachs Group Inc unit is a final bidder for a Tokyo office tower in a deal that could fetch about 165 billion yen ($1.6 billion), said people familiar with the deal, which could be the biggest office property deal in six years.

Secured Capital, part of Asian private equity firm PAG, is trying to sell the 32-storey Pacific Century Place Marunouchi, in a prime spot near the Tokyo railway station. It bought the property for about 144 billion yen in 2009.

Investors are aggressively seeking properties as Tokyo prices are expected to continue a rebound they have seen under Prime Minister Shinzo Abe's growth policies of massive monetary and fiscal stimulus.

Among other recent deals, Japan's Orix Corp and New York investors Angelo Gordon & Co are seeking around 40 billion yen for their stake in a Tokyo office building.

Goldman Sachs Asset Management is competing against at least two other investors with similar bids, said the people with knowledge of the deal. The investors were screened in an initial bid and the sellers will award one of the final bidders exclusive rights to negotiate the deal.

The other bidders could not immediately be confirmed.

A Goldman Sachs spokeswoman declined to comment. Officials at Secured Capital could not be reached for comment.

The bids represent the biggest deal for an office property in Japan since the global crisis of 2008, even though it looks set to fall short of the 180 billion yen that Secured Capital initially sought.   Continued...

A view of the Goldman Sachs stall on the floor of the New York Stock Exchange July 16, 2013.  REUTERS/Brendan McDermid