The property is a 61,000-sf, nine-story building located directly on the Ginza. It houses retail, office and restaurant tenants. The Tiffany store, which opened in 1996 and expanded three years later, occupies 12,000 sf on the first three levels.
Tiffany Chairman/CEO Michael Kowalski says Japan is the company's largest international market and the acquisition will "eliminate uncertainties concerning continued occupancy and rental rates."
Bridge financing for the transaction has been provided by Mizuho Bank, Ltd. The company says it expects to put longer-term financing in place before the end of 2003. The purchase completes the company's acquisition of its three flagship store buildings, New York, London and Tokyo.
Kowalski says that from a capital budget perspective, the Tokyo transaction was unanticipated, and therefore raises expected expenditures for fiscal 2003 from approximately $150 million to $290 million. Shares of Tiffany & Co. jumped by about $0.50 on Monday, when the news was announced, closing at $32.68. In afternoon trading Tuesday, shares were back where they were prior to the announcement, trading at around $32.00. The company's 52-week share price high of $35.09 occurred June 6, 2003; its 52-week low of $19.40 dates back to October 10, 2002.
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