Son buys Tiffany Building
TOKYO: The billionaire founder of tech and telecoms group SoftBank Corp bought the landmark Tiffany Building, here, for 32 billion yen (RM1.05 billion) in one of the priciest property deals in recent years in Japan, underscoring the recovery in the real estate market.
Masayoshi Son, ranked Japan's second-richest man by Forbes, outbid sovereign wealth funds and Japanese corporations for the 10-storey glass structure in the Ginza luxury shopping district, which was put on sale by Asia Pacific Land, said sources.
The building houses the flagship Japan store of jewellers Tiffany & Co and was designed by architect Kengo Kuma.
It was not immediately clear why Son had purchased the building, or how he would finance the deal.
The purchase price would yield an estimated capitalisation rate of 2.6 per cent, based on expected future rental income, well short of the minimum four per cent that Japan's real estate investment trusts typically seek.
The capitalisation rate is also reminiscent of the two per cent yield on some of the most expensive deals of a property boom in Japan that peaked in 2006.
Son holds a 21.8 per cent stake in SoftBank, Japan's third-biggest company by market capitalisation. Reuters