Tiffany Purchases Tokyo Flagship Store Building

Tiffany’s Japanese subsidiary has purchased the land and building housing its Tokyo flagship store in the Ginza shopping district for 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 & Co. store occupies approximately 12,000 square feet on the street level, second and third floors. 

CEO Michael Kowalski thanked Tiffany’s financial abilities for the purchase, “We are pleased that our strong balance sheet allowed us to move quickly to seize this unique opportunity and eliminate uncertainties concerning continued occupancy and rental rates.” 

“This purchase completes the acquisition of our three flagship store buildings, New York, London and Tokyo, and reaffirms our confidence in Tiffany's long-term growth potential in Japan,” he added.

Japan is Tiffany's largest international market, and the Ginza flagship store is a major contributor to the company’s sales results. According to Kowalski, the purchase was not planned, which will increase the full fiscal year 2003 expenditures from a forecasted $150 million to approximately $290 million.