KKR has emerged as the frontrunner to acquire Nissan Motor’s global headquarters in Yokohama, offering about ¥90bn ($610m) through its Japanese real estate unit, KJR Management.

The bid is the highest among several submitted by investment firms, according to people familiar with the matter cited by Bloomberg.

The deal structure includes leasing the 22-storey building back to Nissan for 10 years. Financing arrangements are still under discussion, and there is no guarantee the transaction will proceed.

News of the potential sale lifted Nissan’s shares 1.5% in Tokyo on Thursday, after climbing as much as 3.7% earlier in the session.

The move underscores KKR’s growing footprint in Japan, which Co-Chief Executive Officer Joseph Bae previously described as the firm’s most active market outside the US. Earlier this year, the private equity firm completed a $4.4bn deal to take tech group Fuji Soft private.

For Nissan, the sale comes amid mounting financial strain. The automaker faces $5.6bn in debt obligations due next year, forecasted operating losses of ¥180bn for the April–September period, and rising competition from China’s electric vehicle manufacturers. Its turnaround plan includes cutting 20,000 jobs and reducing manufacturing sites from 17 to 10.

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