Barneys closes Shinjuku store, ‘Himeji’s Trump’ real estate holdings hit with provisional administration order, and developer sells luxury rental apartment building in Tokyo. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
Barneys New York Shinjuku to say farewell in February
The Barneys New York Shinjuku store will close its doors at the end of February, ending a 30-year run. This was the department chain’s flagship store in Japan, opening in November 1990 under a partnership with Isetan. The Japanese company became a subsidiary of Seven & I Holdings in 2015 and has no capital ties with the US Barneys. The closure was due to a steep drop in sales amidst the ongoing pandemic, with no recovery in sight. They still operate stores in Ginza, Roppongi, Yokohama, Kobe and Fukuoka, as well as five outlets.
Himeji’s Trump racks up 20 billion Yen in debt
The ‘Real Estate King of Himeji’ or ‘Himeji’s Trump’ has been hit with a provisional administration order by the Osaka District Court after racking up debts of over 20 billion Yen (approx. US$192 million) in the rapid acquisition of property. The company was established in 2013, acquiring rental apartment buildings, retail assets and car parking lots throughout Himeji, Kobe and Osaka. As many as 5,000 rental units had been purchased. Annual revenue topped 1.37 billion Yen as of February 2019. As acquisitions continued, average occupancy rates began to decline. High advertising fees and loan interest payments saw the company report a net loss of 592 million Yen in the same period, with the company becoming insolvent. In September 2020, their bank transactions were suspended, and the company began disposing of assets.
Luxury rental apartment building in Minato sold
ApaHome has sold The Conoe Mita Tsunamachi – a luxury rental building in Minato’s Mita address. The 9-story apartment building has 45 one and two-bedroom apartments ranging in size from 73 ~ 216 sqm (785 ~ 2,313 sq.ft), and was completed in 2017. This building was originally planned to be a condominium, but sale plans were scrapped. There are currently 6 vacant units advertised for rent, with monthly rents ranging from 650,000 ~ 2,200,000 Yen/month (around 6,300 ~ 10,140 Yen/sqm).
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