Goldman Sachs to Buy Tiffany's Tokyo Property -- WSJ

Goldman Sachs Group is about to sign a deal to buy luxury jeweler Tiffany & Co.'s flagship property in Tokyo for $318 million, according to the Wall Street Journal. Goldman will then rent the property, located in Tokyo's Ginza area, back to Tiffany. Tiffany bought the property for $140 million four years ago. Foreign investment is driving up prices of commercial land in some Japanese cities, while in other cities prices continue to decline (although at a slower pace: commercial land prices outside major metropolitan areas fell 2.8% in 2006 after dropping 5.5% in 2005). In major cities, commercial land prices climbed 2.3% last year. A few months ago, Morgan Stanley bought 13 hotels from All Nippon Airways for $2.4 billion. That bank has invested approximately $17 billion in Japanese real estate. Last year, Goldman raised over $1 billion in shares sold for the Accordia Gold Co., which it set up to manage a portfolio of golf courses in Japan.

Sources: Diamonds.net, Wall Street Journal, Reuters, MarketWatch
Commentary: Morgan Stanley to Buy 13 Japanese Hotels • Goldman Sachs: Spin Doctors or Funds Managers? • GS Quant Fund Bounces Back
Stocks/ETFs to watch: TIF, GS. Competitors: JPM, MER, MS. ETFs: IAI, PKW, RCD
Earnings call transcripts: Goldman Sachs F2Q07
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.

Comments

[Golf Club R...:]

If you are down on golf course real estate stocks, check out golfrentalandsales.com. It caters to golf courses, though is more in tuned to the rental markets.

It is an up and coming play in this sector. Great cashflow, and strong management team.

- Elijah
golfrentalandsales.com

2007 Dec 17 05:18 PM