On July 17, apparel giant Sanyo Shokai announced the sale of their flagship building in Ginza. Temporary store closures during the pandemic have hit the brick-and-mortar retail sector hard, with some cashing out of their real estate holdings to shore up cash reserves. Real estate developers are having a field day as struggling companies reach out to offload long-held and highly-prized assets.
Sanyo is expecting to report a 6.7 billion Yen (approx. 64 million USD) profit on the sale of the building, with the sale price estimated by the Toyo Keizai publication to be over 11.7 billion Yen (approx. 111 million USD). The buyer is an unnamed domestic corporation. A transfer agreement was signed on July 17, with the property to be handed over in late September.
Ginza Timeless 8 opened in September 2019 after a large-scale remodel. The retail space will close at the end of August.
It was previously the Burberry store until late 2015 after Sanyo ended a 45-year licensing agreement with the British fashion house. The company reported a net loss for the past four consecutive financial years but is aiming to turn a profit in 2022.
The Asahi Shimbun, July 17, 2020.
Toyo Keizai, July 21, 2020.
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