Blackstone, Bain and Warburg Pincus prep final bids for Fuji Media property arm

Blackstone, Bain Capital and Warburg Pincus are among the private equity firms preparing final offers for the property division of Japanese broadcaster Fuji Media Holdings, with bids expected by the end of October, according to a report by Reuters citing unnamed people familiar with the sale.

The unit, Sankei Building, could command a valuation of around JPY1tn ($6.3bn), including debt. BGO, the real estate investment arm of Canadian insurer Sun Life Financial, is also preparing a binding offer, the sources said.

A full sale would rank among Japan’s largest real estate transactions and highlights continued private capital interest in the country’s property market.

The proposed transaction has also attracted scrutiny from Fuji Media shareholders. Vasanta Master Fund, which owns less than 1% of the broadcaster, called for greater disclosure around the potential sale in a September 30 letter to group CEO Kenji Shimizu.

The investor argued that the scale and complexity of Sankei Building’s portfolio could restrict the buyer pool to a small number of large private equity firms, potentially limiting the value that can be returned to existing shareholders.

Vasanta has requested further information on the value of the underlying assets, the proposed transaction structure and alternatives including a partial disposal, spin-off or phased sale. It also wants greater clarity on how any proceeds would be deployed.

Fuji Media is expected to seek shareholder approval once it selects a preferred bidder, according to people familiar with the process. The company said it is still assessing the method, scale and timing of any investment involving the property business and will make an announcement once a decision has been reached.