TOKYO Feb 14 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
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