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No. 354, March 1999

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American Companies in Japan


Factory outlet mall operator CHELSEA GCA REALTY PARTNERSHIP LP and partners MITSUBISHI ESTATE CO., LTD. and NISSHO IWAI CORP. will open their first outlet mall in the summer of 2000 in Gotemba, Shizuoka prefecture (see Japan-U.S. Business Report No. 348, September 1998, p. 12). The first of what could be 10 such malls will be built on land leased from ODAKYU ELECTRIC RAILWAY CO., LTD. In this early planning phase, the Gotemba mall is expected to have between 215,300 square feet and 269,100 square feet of floor space. Roseland, New Jersey Chelsea GCA and its partners hope to attract 60 to 70 tenants, most of them selling brand-name merchandise at a discount.

A real estate investment fund established last fall by COLONY CAPITAL, INC. and KENNEDY-WILSON INC. was the highest bidder for RECRUIT CO., LTD.'s office building in Kawasaki, Kanagawa prefecture. The price of the 20-story building, completed in 1988, was not disclosed but was estimated to be in the $85.5 million to $94 million range. The two Los Angeles companies technically bought the income rights to a real estate investment trust set up by YASUDA TRUST & BANKING CO., LTD. ORIX CORP. lent the pair the majority of the money needed to finalize the deal. One of its affiliates will manage the building.

An exchange rate of ¥117=$1.00 was used in this report.aaaaaa

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