Funds managed by Tosei Asset Advisors, a subsidiary of Tokyo property group Tosei Corporation, announced on 6 January a tender offer to take SANKEI REAL ESTATE, a listed J-REIT, private at ¥125,000 per unit.
Why Funds managed by Tosei Asset Advisors (Tosei Corporation) is buying SANKEI REAL ESTATE, Inc.
The offer aimed to address the REIT's units trading below net asset value and to allow medium- to long-term improvements in asset value outside the public market. The REIT's board supported the bid, and a squeeze-out and delisting were planned if it succeeded.
Deal terms and financing
The price was a 21.4% premium to the ¥103,000 closing price on the business day before the announcement, for a total of about ¥58.4bn if all 467,099 units were acquired. Sponsor Sankei Building agreed to tender all its units. The offer carried a minimum of 247,563 units, equal to 53%.
Regulatory approvals and timing
The offer period, originally 7 January to 19 February 2026, was extended to 18 May through amendments filed with the Kanto Local Finance Bureau. Tosei announced on 19 May that tendered units were below the minimum, so the offer lapsed and no units were purchased.
Market context
Sankei Real Estate was established in 2018 and listed in 2019, sponsored by Sankei Building, part of Fuji Media Holdings, whose parent has faced activist pressure over its property holdings. Listed Japanese REITs trading at discounts to NAV have become take-private targets for property funds.
