Kenedix Sells Its Largest Office Building to Carlyle

Kenedix Inc., a listed real estate company, sold KDX Toyosu Grand Square, a large office building developed by it in Shinonome, Koto-ku, Tokyo to a fund managed by The Carlyle Group. The office building is Kenedix's largest development project, which was completed in May 2008. It is located in the Tokyo Bay area, which is currently undergoing substantial redevelopment. Each floor boasts approximately 5,000 square meters of office space, and is furnished throughout with high-spec equipment and fittings.

We had heard that Kenedix would sell it to an European investor at $400 million. Since the investor turned down the deal, Kenedix has been looking for buyers and at last was able to sell to one of the world's largest private-equity firms. The price was not disclosed yet but is estimated to be somewhere around $350 million, which yields 7%.