In a strategic move, Japan’s Sapporo Holdings has agreed to sell its real estate division to KKR, a leading global private equity firm, and PAG, an Asia-based alternative investment firm. This transaction was announced in a joint statement by the companies on Wednesday.

The deal, which encompasses debt, is valued at an enterprise amount of 477 billion yen, approximately $3 billion, according to Sapporo.

Sapporo’s real estate assets include the renowned Yebisu Garden Place in Tokyo, a bustling tourist spot that features the Yebisu Brewery, alongside a variety of upscale dining and shopping venues.

Primarily recognized for its beer production, Sapporo aims to refocus its management efforts on its main business operations. The proceeds from this sale are slated for reinvestment in the company’s beer segment and other business areas.

“Sapporo Holdings will focus on and further strengthen its alcoholic beverages business, where it has competitive advantages,” the statement said. Proceeds from the sale will also be reinvested into initiatives to strengthen customer touchpoints and expand offerings such as healthier beverage choices

The company’s shares closed 3.7% higher following the announcement, while KKR stock was slightly lower in after-hours trading.

“We are pleased to collaborate with PAG to support the Company’s next stage of growth, and look forward to sharing our global network, investment experience and deep operational expertise in development, operations, and hospitality across KKR’s global platform,” said Hiro Hirano, CEO of KKR Japan.

Back in October, Nikkei reported that the company had granted preferential negotiating rights to KKR and PAG, only to end exclusive talks the next month.

The report said the two sides were unable to agree on the sale price of the real estate business, as the properties in the portfolio “required significant and costly repairs due to aging facilities and the necessary implementation of safety measures.”

At that time, Sapporo had opened the sale to other buyers and was reportedly approaching a consortium made up of private equity funds Lone Star Funds and real estate fund manager Kenedix.