As part of their expansion in investment in the Ginza district, real estate company HULIC has acquired the Tiffany Ginza Building from SoftBank CEO Masayoshi Son this month. This was a joint purchase with Fuyo General Lease, a Mizuho Financial Group company.
The sale price was not disclosed, although it is estimated to be over 30 billion Yen (approx. 279 million USD). Son purchased the building in late 2013 for 32 billion Yen, with a resulting cap rate of just 2.6%. Prior to that, Goldman Sachs had purchased the building from Tiffany in 2007 for 38 billion Yen from Kenedix (who had paid 16.5 billion Yen for it back in 2003). Following the global financial crisis, the property was sold to a Hong Kong-based fund.
The 9-story building was built in 1987, with a refurbishment and re-design carried out by Kengo Kuma in 2008. It has a total floorspace of 5,870 sqm (63,100 sq.ft) and sits on 700 sqm of land. Tiffany has had a presence in Japan since 1972, with the Ginza main store opening in this location in 1996. The upper floors are dedicated office space.
Source: The Nikkei Shimbun, July 3, 2020.
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