Kansai Elec To Buy Real Estate Firm From Fund

Kansai Electric Power Co. will purchase real estate firm MID Urban Development Co. from property fund Aetos Japan LLC at an estimated price of more than 10 billion yen, according to Nikkei. MID Urban Development Co, an ex-real estate affiliate of the Panasonic Group, develops office buildings and condominiums and manages real estate investment funds. While MID has seen earnings deteriorate amid the property market slump since last year, Kansai Electric, Japan's second largest electric power company, is in the real estate business through a subsidiary that sells condos, generating about 40 billion yen in sales for this segment. By acquiring 80% of the MID Urban shares held by Aetos Japan, the utility aims to obtain property development know-how and accelerate its push for all-electric houses.