Masayoshi Son Buys Tokyo’s Tiffany Building
News: Masayoshi Son , the founder of Japanese telecoms company SoftBank , has purchased the Tiffany Building in Tokyo for a reported JPY32bn (US$326mn), according to World Property Channel. The 10-storey glass building, designed by architect Kengo Kuma, is located in the Ginza luxury shopping district. The deal is the latest in a series of high profile acquisitions in Japan ' s real estate market, with many investors gambling on the success of Prime Minister Shinzo Abe ' s economic recovery initiatives.
BMI View : We continue to believe that although the housing sector is still outperforming, commercial real estate in Japan is also set to experience strong growth in the long term. Evidence of this can be found in the large volume of investment into the commercial real estate sectors. We believe this is because until a large number of new developments are completed, little change is expected in the supply and demand ratios with regards to available rental space. Over the long term, we anticipate higher leasing income, lower vacancy rates, higher sales and the opening of new office properties.