Refile: UPDATE 2-Japan's Hulic will buy Simplex for $1.3 bln, sell some assets
28/10/2015 09:20
(Corrects headline to remove attribution to source)
* Hulic to only keep Simplex's properties
* Beat out China's Anbang Insurance to clinch deal
By Junko Fujita
TOKYO, Oct 28 (Reuters) - Japanese developer Hulic Co
3003.T will buy Tokyo-based Simplex Investment Advisors for
about 155 billion yen ($1.3 billion) from U.S. investment Aetos
Capital in Japan's largest property deal this year, the two
firms said on Wednesday.
Hulic, which has been expanding its property development and
acquisitions in Japan, only plans to keep Simplex's properties
and will sell other assets to a unit of Mizuho Financial Group
8411.T , it said in the statement. Aetos also confirmed the
deal in a separate statement.
The sale comes at a time of high interest in Japanese
property as aggressive monetary expansion policies deployed
under Prime Minister Shinzo Abe have lowered borrowing costs.
The deal attracted China's insurance group Anbang Insurance
Co, as well as U.S. investment funds Blackstone Group BX.N ,
Fortress Investment Group FIG.N and Elliot Management, people
familiar with the matter had told Reuters earlier.
Domestic property firms Mori Trust Co and Kenedix Inc
4321.T also participated the bid, sources said.
A person involved in the transaction said Hulic had pulled
out of the deal after the final bids closed in August because
Aetos had asked for a higher price.
But Aetos asked Hulic to reconsider the deal, allowing it to
buy Simplex at around 155 billion yen, the person added, asking
not to be identified because they are not authorised to speak to
the media.
Hulic plans to hold onto Simplex's properties, of which
there are five, according to its website, including a hotel near
Tokyo Disney Resort and office buildings in Tokyo.
Hulic said it would sell Simplex REIT Partners, which
manages SIA Reit Inc 3290.T and fund management firm Simplex
Real Estate Management to Mizuho Trust & Banking.
It also said it would purchase of a 25 percent stake in
hotel management company Nippon View Hotel 6097.T .
Aetos and Goldman Sachs Group GS.N bought Simplex for
about 500 billion yen in 2007 in Japan's largest ever property
deal. Aetos bought out Goldman's 50 percent stake in Simplex in
2011 after the property market crashed in the wake of the global
financial crisis.
($1 = 120.3600 yen)
(Reporting by Junko Fujita; Editing by Chang-Ran Kim and Edwina
Gibbs)
((ran.kim@thomsonreuters.com; +81-3-6441-1804; Reuters
Messaging: ran.kim.reuters.com@reuters.net))
Keywords: SIMPLEX HULIC/