TOKYO—US-based Aetos Capital Real Estate LP said Wednesday it had agreed to sell its entire holding in Simplex Investment Advisors Group to a partnership of Mizuho Financial Group and developer Hulic Co Ltd. The partnership is buying SIA Group for JPY 155 billion, or approximately US$1.3 billion, in what is reportedly the largest property deal in Japan this year.

SIA Group controls 13 class A properties mainly in central Tokyo, including a mixture of commercial office buildings, high grade retail and the Tokyo Bay Maihama Hotel, an official Tokyo Disney Resort property. It also manages more than JPY 150 billion in assets for third parties

“Aetos has had a long and successful track record in Japan, which served us well in managing this investment,” says Scott Kelley, founder and CEO of Aetos. After the 2008 financial crisis, Aetos recapitalized SIA Group, then “secured 100% ownership of the equity, changed management, sponsored and sold assets to a J-REIT, and streamlined operations and the business strategy. During our period of exclusive ownership, the performance of the company has improved in each successive year. This transaction is a good result for our investors, and is positive for SIA Group going forward.”

Hulic will keep SIA Group's properties, and sell its other assets to a Mizuho unit, the two companies said in a statement Wednesday. The deal reportedly marks Mizuho's initial foray into REIT management. Published reports also say China's Anbang Insurance Co. as well as Blackstone and Fortress Investment Group all were interested in the deal.