Blackstone Reportedly Buying Japan Assets

Blackstone Group may buy Morgan Stanley's real estate assets in Japan, a report says.
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NEW YORK (

TheStreet

) --

Blackstone Group

(BX) - Get Report

may buy

Morgan Stanley

(MS) - Get Report

real estate assets in Japan,

Bloomberg

reports.

It would be Blackstone's first property investment in Japan.

Blackstone, the world's biggest private-equity firm, expects to complete a deal for assets with a face value of 100 billion yen ($1.16 billion) next week,

Bloomberg

reports, citing a person familiar with the deal. Blackstone may offer less than 50% of the face value of the portfolio, which consists of 11 non-recourse loans with about 30 office buildings mainly located in greater Tokyo, the person said.

The deal could suggest that property prices in Japan have reached a bottom.

Blackstone may sell some of the buildings and own some after the acquisition of the debt portfolio, the person told

Bloomberg

.

The

Nikkei

newspaper first reported the news, saying a deal between Blackstone and Morgan Stanley was imminent.

-- Written by Joseph Woelfel in New York.

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