The Tokyo building that is home to Tiffany & Co.’s largest boutique in Asia has slashed its asking price by a third after being on the market for months, reflecting a cooling of the Japanese real estate market amid rising interest rates and inflation. Kurosawa Group, the owner of the building in Tokyo’s glitzy Ginza area, has struggled to find interested buyers for several months with an asking price of ¥120 billion ($760 million), according to people familiar with the matter who asked not to be identified discussing private matters. The closely-held firm is now open to offers as low as ¥80 billion, the people added.
Tiffany, part of LVMH Moet Hennessy Louis Vuitton, has a 25-year fixed lease for its space in the building, sales documents show. The long lease with Tiffany at a fixed rent has deterred buyers in an inflationary environment where the appeal of buying real estate lies in the ability to raise rents, the people familiar said.
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