TOKYO Aug 13 A Goldman Sachs Group Inc
unit is a final bidder for a Tokyo office tower in a deal that
could fetch about 165 billion yen ($1.6 billion), said people
familiar with the deal, which could be the biggest office
property deal in six years.
Secured Capital, part of Asian private equity firm PAG, is
trying to sell the 32-storey Pacific Century Place Marunouchi,
in a prime spot near the Tokyo railway station. It bought the
property for about 144 billion yen in 2009.
Investors are aggressively seeking properties as Tokyo
prices are expected to continue a rebound they have seen under
Prime Minister Shinzo Abe's growth policies of massive monetary
and fiscal stimulus.
Among other recent deals, Japan's Orix Corp and New
York investors Angelo Gordon & Co are seeking around 40 billion
yen for their stake in a Tokyo office building.
Goldman Sachs Asset Management is competing against at least
two other investors with similar bids, said the people with
knowledge of the deal. The investors were screened in an initial
bid and the sellers will award one of the final bidders
exclusive rights to negotiate the deal.
The other bidders could not immediately be confirmed.
A Goldman Sachs spokeswoman declined to comment. Officials
at Secured Capital could not be reached for comment.
The bids represent the biggest deal for an office property
in Japan since the global crisis of 2008, even though it looks
set to fall short of the 180 billion yen that Secured Capital
Pacific Century Place Marunouchi, completed in 2001, was
bought by K.K. daVinci Holdings in 2006 for 200 billion yen at a
Shinsei Bank Ltd extended loans for the highly
leveraged transaction and took control of the property when
daVinci became unable to repay on time after Japan's real estate
market crashed in the global financial crisis.
Pacific Century is located in Tokyo's Chiyoda ward, where
rents are the highest and vacancy rates remain the lowest in
(1 US dollar = 102.4600 Japanese yen)
(Reporting by Junko Fujita; Editing by William Mallard and Matt