KKR Reportedly Set to Acquire Nissan Headquarters Building

According to foreign media reports, insiders recently revealed that the American private equity firm KKR Group has become the main bidder for Nissan's global headquarters building. KKR's Japanese real estate subsidiary, KJR Management, has offered about 90 billion yen (equivalent to 610 million USD) for Nissan's 22-story office building, the highest bid among several investment companies.

Insiders also mentioned that KKR and KJR Management are considering raising funds for this potential deal, which includes acquiring the office building and then leasing it back to Nissan for a 10-year term. However, negotiations are still ongoing, and the parties involved may also decide to terminate the deal.

Nissan headquarters image source: Nissan

Both Nissan and representatives from KKR Group declined to comment on the aforementioned report.

KKR Group, headquartered in New York, USA, has been expanding its business in Japan, particularly in the fields of private equity and real estate transactions. The company’s Co-CEO, Joseph Bae, stated last year that Japan is KKR’s most active investment market outside the United States. Earlier this year, KKR also privatized Japanese technology company Fuji Soft Inc. for $4.4 billion.

Nissan Motor Co.'s headquarters is located in the central business district of Yokohama, a port city south of Tokyo and part of the Tokyo metropolitan area. Currently, Nissan is facing multiple challenges, including fierce competition from the rapidly rising electric vehicle sector in China, an aging product line, and persistently low car sales. Additionally, the company will face the pressure of $5.6 billion in debt maturing next year. Currently, this struggling automaker is working to improve its financial situation by selling off assets, including its headquarters building in Yokohama.

Nissan expects an operating loss of 180 billion yen for the period from April to September this year. Currently, the company's plan to return to profitability is still in its early stages. This plan will cut 20,000 jobs and reduce the number of production bases from 17 to 10. At the same time, due to the tariff policies of U.S. President Trump, Nissan will also face tariff losses of approximately 300 billion yen.

Tatsuo Yoshida, Senior Automotive Analyst at Bloomberg Industry Research, stated in a report on August 21: "Nissan's challenge lies in restoring profitability through bold and comprehensive restructuring. Top priorities include optimizing capacity and workforce size, reducing excess inventory, and revitalizing its underperforming business in China."