Japan’s Fuji Media Marketing Sankei Building Property Unit for Potential $5B Sale

Fuji Media Holdings has kicked off a sale campaign for its Sankei Building property unit, drawing interest from more than 20 firms in what could become Japan’s largest real estate transaction of the year, according to a media report.

The Tokyo-based broadcaster has engaged Daiwa Securities and Mizuho Securities to advise on the process, with first-round bids expected by May, Bloomberg said Friday. The disposal could value Sankei Building between JPY 500 billion and JPY 800 billion ($3 billion to $5 billion), sources told the news agency.

The potential sale follows Fuji Media’s February announcement that it was exploring strategic options for its real estate business, which also includes hospitality operator Granvista Hotels & Resorts and nine other subsidiaries, with assets totalling JPY 613.1 billion ($3.9 billion).

That statement came amid pressure from activist investors, including funds linked to Yoshiaki Murakami and Dalton Investments, which have called for improved capital efficiency and a separation of the company’s property assets.

Trophy Tower Offered

The Sankei Building portfolio is anchored by the 31-storey Tokyo Sankei Building in Chiyoda ward, a prime office tower in the capital’s Otemachi financial district.

The 2002-vintage building sits on a 2,958 square metre site and provides 75,144 square metres (808,843 square feet) of leasable space, with typical office floorplates of 1,737 square metres.

Beyond flagship offices, the portfolio spans hotels, apartments, nursing homes and warehouses, as well as marine park assets featuring killer whales — an oddball component that has added intrigue to the sale process, according to the Bloomberg account.

Fuji Media said in February that it had struck a deal with Murakami-linked entities to buy back all of their shares, with the move seen as quashing a threatened tender offer that would have boosted their stake to 33.3 percent. But the situation remains fluid, with the Murakami camp reportedly continuing to build its position and submitting a JPY 350 billion offer for Sankei Building in March.

Unleashing Value

Carve-outs of property holdings are a growing source of deal flow in Japan. In the closing weeks of 2025, US buyout giant KKR joined forces with Asia-focused private equity shop PAG to acquire the real estate business of Sapporo Holdings in a deal valuing the property assets and operations at JPY 477 billion ($3 billion).

The deal capped months of bargaining over Sapporo Real Estate after the brewer came under pressure from activist shareholders to streamline its business and shed non-core assets.

KKR in February of last year privatised Fuji Soft in a deal valuing the company at north of $4 billion, following a protracted battle against Bain Capital. KKR had nodded to the systems developer’s property holdings in its original tender offer made in August 2024.

Seven months after the takeover, Mingtiandi reported that Fuji Soft had sold a 14-asset portfolio of office properties to Japan Metropolitan Fund, a KKR-managed REIT, for JPY 68.7 billion (then $463 million). The software maker is leasing back the divested assets.