Bain Capital, LP, KKR & Co. Inc. (NYSE:KKR) and Lone Star (Lone Star Americas Acquisitions, Inc.) are among investment firms that have advanced to the second round of bidding for the real estate unit of Sapporo Holdings Limited (TSE:2501), according to people familiar with the matter. Bidding will end in August and the sale price is expected to exceed ¥400 billion ($2.8 billion), said the people, who asked not to be identified discussing non-public information.

The aim is to reach an agreement by the end of this year, they said. Sapporo Real Estate Co. (Sapporo Real Estate Development Co., Ltd.) owns and operates Yebisu Garden Place, one of Tokyo?s biggest mixed-use developments, housing the Michelin three-star French restaurant Joel Robuchon, Westin Hotel, a Yebisu beer brewery as well as stores and condominiums. Sapporo Holdings, a maker of beverages including beer and whiskey, plans to use the proceeds from the sale to invest in future growth initiatives, the people said.

Sapporo Holdings shares advanced 4.8% on June 11, 2025 after the Bloomberg report, the sharpest gain in two months. Japanese companies are facing increased pressure from activist shareholders to sell off businesses that aren?t profitable or aren?t related to their main operations. One of those investment firms, 3D Investment Partners, has said that Sapporo Real Estate should be spun off, because its business is being used to cover up the poor performance of the core beverage operations.

Bain is collaborating with East Japan Railway Company (TSE:9020) and Tokyu Corporation (TSE:9005) in its bid, the people said. The Bain camp?s proposal is expected to take into account Yebisu Garden Place?s connection to JR Ebisu station via a moving walkway, and its proximity to Shibuya station, which is served by both JR and Tokyu lines, they said. Representatives for Bain Capital, KKR and Sapporo declined to comment.

Spokespeople for Tokyu and Lone Star weren?t immediately available to comment. A JR East spokesperson said that the company isn?t participating in the bidding, and isn?t collaborating with Bain Capital. More than 10 companies submitted bids in the first round held in December 2024, the people said.