TOKYO Feb 14 (Reuters) - U.S. private equity firm Cerberus Capital Management LP has sold a 1,900 square meter block of land in Tokyo's posh Aoyama shopping district to Japanese general contractor Shimizu Corp for 13 billion yen ($127 million) as the U.S. investment fund tries to recoup gains from its Japanese assets.
The land was owned by Cerberus' fully owned real estate developer, Showa Jisho Co, and is located in the area that houses such global luxury brands as LVMH, Bulgari and Celine. It currently is used as a parking lot.
The sale comes as Japan's property markets boom thanks to efforts by Prime Minister Shinzo Abe to bring sustained growth to the world's third-largest economy. Abe has promoted monetary, fiscal and structural reforms, dubbed "Abenomics", that have fueled property prices.
The Urban Renaissance Agency, a government controlled property manager, sold an adjacent 2,500 square meter lot to a private investor in March last year for 5.6 billion yen. The price Cerberus sold the lot shows a gain in land prices in Tokyo.
Cerberus is in the process of cashing out its Japanese assets it purchased the early 2000s. The U.S. firm has agreed to sell its stake in a Japanese railway operator Seibu Holdings Inc through an initial public offering.
Earlier this month it sold its stake in a property operator Kokusai Kogyo Co for about 140 billion yen to the company's founding family.