Shuwa Arco Plaza

The Japanese non-performing loan market started to evolve in 2002, as the large money center banks in Tokyo were seeking to resolve problem loans with long-standing clients. The banks wanted to address the loan issues and preserve client relationship.  The outright sale of these loans would not serve both purposes.    

In late 2001, TPG saw the evolution take shape and positioned itself to be able to accommodate the “win-win” goals of the banks. This was made possible by the fact that TPG had already developed a reputation in Japan as an attractive foreign investor.

Bank of Tokyo’s loan to Shuwa, (a premier Japanese real estate company), secured by Arco Plaza, (a 2.5M SF class A office building in downtown Los Angeles), presented an opportunity and a challenge.  What had become a thorny, complex workout was solved as Picerne Capital bought the corporate debt and entered into an agreement to purchase the asset, as well as the underlying debt.