On the Dash:
- KKR is the lead bidder for Nissan’s $610M Yokohama headquarters.
- The sale would give Nissan cash while leasing back the HQ for 10 years.
- Nissan is restructuring amid losses, debt, and EV market competition.
KKR & Co. has become the leading bidder to acquire Nissan’s global headquarters in Yokohama, Japan, in a potential $610 million sale, according to sources familiar with the matter who spoke to Bloomberg. The move is part of Nissan’s broader effort to raise cash and stabilize its finances.
The 22-story office building drew multiple bids from investment firms, but KKR’s Japanese real estate unit, KJR Management, submitted the highest offer, around $610 million.
The proposed transaction would include a leaseback arrangement allowing Nissan to occupy the headquarters for the next 10 years. The discussions are ongoing, and the parties could ultimately decide not to proceed, the sources said.
Nissan shares rose 1.5% in Tokyo trading Thursday after initially jumping 3.7% on news of the potential sale. Representatives for both Nissan and KKR declined to comment. New York-based KKR has been expanding its presence in Japan, particularly in private equity and real estate. Earlier this year, the firm finalized a $4.4 billion deal to take Japanese tech company Fuji Soft Inc. private, marking one of its largest recent Japanese investments.
Nissan’s headquarters sits in Yokohama’s central business district, part of the greater Tokyo metropolitan area. The automaker is navigating significant financial and operational challenges, including $5.6 billion in debt due next year and a forecasted $1.2 billion operating loss for April through September. The company is in the early stages of a restructuring plan that includes cutting 20,000 jobs and reducing manufacturing sites from 17 to 10.
Intensifying competition from China’s expanding electric vehicle market and the financial impact of U.S. tariffs, projected at $2.0 billion, have added pressure. Bloomberg Intelligence analysts note Nissan’s turnaround strategy focuses on restoring profitability by optimizing production, managing workforce levels, reducing excess inventory, and improving underperforming operations in China.
The potential sale of the headquarters would provide Nissan with much-needed liquidity while maintaining continuity at its primary administrative hub to stabilize operations amid ongoing financial and market pressures.
