The Osaka prefecture has reportedly cancelled the sale of Osaka Prefectural Urban Development after the local government turned down a $755m bid from private equity firm Lone Star Funds.
Lone Star won the competition for Osaka Prefectural Urban Development, which operates Semboku Rapid Railway, but its bid failed to secure the approval of local lawmakers.
The government has not decided whether to launch another auction of Osaka Prefectural Urban Development, said Bloomberg, citing a person with knowledge of the matter.
Last week Lone Star agreed to buy German commercial buildings company TLG Immobilien from the country’s Federal Ministry of Finance in a €1.1bn deal.
In November the Dallas-based firm held a $7bn final close for its latest real estate fund.
Lone Star Real Estate Fund III is significantly larger than the $5.5bn predecessor vehicle and is nearly three-times the size of its debut real estate fund raised in 2008.
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