Lone Star aims to sell Tokyo property for $1.3 bln-sources
TOKYO Aug 12(Reuters) - Global private equity firm Lone Star has put a Tokyo property on sale aiming to raise up to 100 billion yen ($1.3 billion) before loans on the office and banquet hall complex mature early next year, sources with knowledge of the matter said.
The move to sell the Meguro Gajoen complex in central Tokyo reflects Lone Star's desire to fetch a higher price than the 80 billion yen in loans taken out to finance the original purchase, as well as a tough funding environment in Japan that would make it difficult to refinance the loans, the sources said.
The sources asked not to be identified because the planned sale has not been made public. An official at Lone Star's Tokyo office declined to comment.
If Lone Star is able to unload the property at its asking price the deal would rank as the largest transaction involving office and commercial properties in Japan since Lone Star's sale in March of office buildings to Mitsubishi Estate Co for 90 billion yen.
The real estate market in Japan remains stagnant, having yet to recover from the slump caused by the global financial crisis in 2008. ($1 = 76.780 Japanese Yen) (Editing by Michael Watson)