Tiffany & Co., New York, said that its Japanese subsidiary has purchased the land and building housing its flagship store in Tokyo’s famous Ginza shopping district. The purchase price was 16.5 billion yen (approximately $140 million) plus transaction fees.
The 61,000 square foot, nine-story building, located directly on the Ginza, houses retail, restaurant and office tenants. The Tiffany store occupies approximately 12,000 sq.ft. on the street level, second, and third floors. Tiffany opened the store in 1996 and expanded it in 1999.
“This purchase completes the acquisition of Tiffany’s our flagship store buildings, New York, London and Tokyo, and reaffirms our confidence in Tiffany’s long-term growth potential in Japan, said Michael J. Kowalski, chairman and chief executive officer. “From a capital budget perspective, this transaction was unanticipated. As we look forward to the full fiscal year 2003, expenditures are now expected to be approximately $290 million (inclusive of this transaction), versus the previous forecast of $150 million.”