Goldman added to its string of property-related deals in Japan during the past year
The asset management arm of Goldman Sachs and the founding family of Nihon Housing have completed a take-private deal valuing the Tokyo-based property manager at JPY 77 billion ($530 million).
Nihon Housing has 500,000 units under management in Japan, Taiwan, Singapore and Vietnam. In May, the company announced plans for a management-led buyout and Goldman tender offer at a premium of 45.9 percent to the trailing three-month average share price.
Under the new ownership structure, Goldman Sachs Alternatives holds a 50 percent stake in Nihon Housing while the other half is held by entities controlled by the family of founder and chairman Fumio Osano.
The partnership with Goldman will see Nihon Housing expand its management specialty from condominiums to additional assets including offices, the Manhattan-based banking giant told Mingtiandi on Tuesday.
“We are pleased to welcome Nihon Housing into our global network,” said Stephanie Hui, head of Asia private equity at Goldman Sachs. “We look forward to supporting this leading platform to grow into additional specialties and to working with more Japanese companies and helping them achieve their business goals.”
Japan Growth Strategy
Founded in 1966, Nihon Housing reported $1 billion in revenue and $64 million in earnings before interest, tax, depreciation and amortisation during the latest 12-month period. The company employs more than 5,700 across its condo management and repair work businesses.
Stephanie Hui, head of Asia private equity at Goldman Sachs
Nihon Housing formally delisted from the Tokyo Stock Exchange on Monday, according to a filing. The transaction marks the first management buyout by Goldman Sachs in Japan since 2021, when the firm took private the road paving contractor Nippo Corp at a value of $4.2 billion.
“Goldman Sachs has positioned its alternatives business within the asset management business as a pillar of its growth strategy and will continue to build up private equity investments in Japan,” the firm said Tuesday.
Japan recorded $19.3 billion in investment volume across income-generating real estate to lead all Asia Pacific markets during the first half of 2024, according to MSCI’s latest Capital Trends report.
The first three months alone saw $13.4 billion in trades, the highest quarterly value since the data provider began tracking in 2007.
Deals Keep Coming
Goldman’s successful take-private deal comes after the firm last Friday revealed its acquisition of a portfolio of eight rental residential assets in Greater Tokyo for $80 million. The seller was described as a major financial institution.
Goldman ramped up its involvement in multi-family in 2022 when its asset management arm teamed with Tokyo-based Sojitz on a joint venture seeking to acquire $300 million worth of rental residential properties in Japan during that year and up to $500 million annually thereafter.
Beyond residential, the global titan last year formed a consortium with Singapore’s SC Capital Partners and the Abu Dhabi Investment Authority to buy a portfolio of 27 resort hotels across Japan from property giant Daiwa House Industry for $900 million.
Earlier this year, a Goldman-managed fund bought a set of four office floors at GranTokyo South Tower from a Mitsui Fudosan-sponsored REIT for $281 million.
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