UBS sells stake in real estate company in Japan
UBS and Mitsubishi are selling their joint venture MC-UBSR to the American private equity firm KKR. The sale of the jointly held real estate asset manager has no impact on the rest of UBS's business in Japan.
UBS Asset Management and Mitsubishi Corporation have agreed to sell their Mitsubishi Corp.-UBS Realty Inc. (MC-UBSR) joint venture to American private equity firm KKR & Co. Inc. , UBS Group AG and UBS AG announce in a press release. The transaction, which is still subject to the approval of the relevant authorities, is expected to be completed in the coming month. The sale has “no impact on UBS’s asset management, wealth management and investment banking business in Japan,” explains the major Zurich bank.
The sale marks the end of a 20-year success story for the joint venture. According to her, MC-UBSR has developed into one of Japan’s largest asset managers in the real estate sector. “We believe KKR is well positioned to continue to grow the business,” Suni Harford, President of UBS Asset Management, said in the statement. For UBS, the sale is expected to generate a gain in asset management and an increase in core capital (CET1) of around $0.9 billion.
“The Japanese market remains a cornerstone of our Real Estate & Private Markets business in Asia Pacific going forward,” said Harford. Real estate investments in Japan are to be offered to clients through the UBS Japan Advisors unit.