Universal Studios Japan gets US$250m cash boost from PAG

PAG, an Asian-focused private equity and investment management firm, has invested US$250 million in theme park operator Universal Studios Japan in its first corporate investment in Asia's second-largest economy.

The deal was announced shortly after the Bank of Japan again hinted that a fresh round of monetary accommodation could be on the way in the face of reduced household confidence in Abenomics.

The fresh capital will be deployed into the development of the new Harry Potter attraction in Japan and expansion into other parts of Asia.

The Japanese private equity market remains one of the most difficult in Asia because of the stringent regulatory environment.

Nevertheless, private equity firms have invested US$4 billion in the country so far this year, surpassing last year's US$3.7 billion, according to Dealogic. Merger and acquisition deals in the real estate sector posted a 93 per cent year-on-year increase to US$25.5 billion in the first nine months, followed by the financial sector, in which the deal value doubled to US$11.6 billion.

A consortium of investors, including PAG and the Abu Dhabi sovereign wealth fund, bought Tokyo's Shiba Park Building for US$1.2 billion in August in the biggest property investment in Japan since the global financial crisis in 2008.