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Goldman Sachs to buy Tiffany’s Tokyo Flagship Store for 3.7 or 37 Billion Yen

This one is just off the Nikkei press: Goldman Sachs To Buy Tiffany’s Main Store In Japan For Y3.7bn.

According to the article, Goldman Sachs is set to buy the land and building “for about 37 billion yen.” That figure does not jive with the headline, though in the article we discover that Tiffany’s itself bought the land and property in Ginza for 16.5 billion yen in 2003. We’re assuming that Goldman’s is paying the higher figure, though it’s still too early for a correction to be issued. Tiffany’s will continue to operate the shop by signing a long-term lease with Goldman’s.

The purchase price values the land at 180 million yen per tsubo, which is about 3.3 square meters. That makes the site Japan’s most expensive single piece of real estate - by a stretch - as the price apparently values the land 80% higher than Yamano Music’s main store in Ginza, which was the highest valued property in Japan in 2007.

The Nikkei also tells us that earlier in August, Goldmans paid confectioner Fujiya and other firms 9.3 billion yen for the building across the street from Tiffany’s. We’re not assuming that Tiffany’s is as desperate to sell off assets as Fujiya was.

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