Mori, LVMH in 83b yen Ginza building project
[TOKYO] Mori Building Co, Japan's biggest closely held developer by sales, and LVMH Moet Hennessy Louis Vuitton SA, the world's largest luxury-goods maker, are part of a group that will develop a retail and office complex in Tokyo as they anticipate increasing consumer spending.
The two companies along with Sumitomo Corp and J Front Retailing Co will spend 83 billion yen (S$1 billion) on a 13-story building with six underground levels in Ginza, said Shingo Tsuji, president of Mori Building, at a press conference on Tuesday in Tokyo. Construction of the commercial facility, with about 147,600 square metres (1.6 million square feet) of floor area, will start this month and be completed by November 2016, the companies said in a statement.
Japanese developers are starting projects ahead of the 2020 Olympic Games as expectations of higher consumer spending and stronger demand for office space push up land prices in major cities. The price of land in the Ginza shopping district, where Japan's most expensive commercial property is found, rose 9.6 per cent in 2013 to 29.6 million yen per square metre, according to the land ministry.
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