Financial Issues
Mori Building has financed the project with $800 million equity and $1.3 billion in debt from a syndicate of banks led by the Development Bank of Japan. As a result, the company's overall debts are $5.6 billion, secured by billions more in assets.
Goldman Sachs & Co., the project's anchor tenant, attracted deep discounts in rental prices because of the large amount of space it occupies. Japan's sluggish economy, staff cuts by foreign companies, and the flow of new office space have put downward pressure on rents.
Because of conservative eminent domain law in Japan, several past residents of the site that would be Roppongi Hills have been given residential units in the complex in return for their agreement to vacate their prior homes, so that their prior homes would be demolished and the land use for the development of Roppongi Hills.
Read more about this topic: Roppongi Hills
Famous quotes containing the words financial and/or issues:
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
—William Howard Taft (1857–1930)
“How to attain sufficient clarity of thought to meet the terrifying issues now facing us, before it is too late, is ... important. Of one thing I feel reasonably sure: we can’t stop to discuss whether the table has or hasn’t legs when the house is burning down over our heads. Nor do the classics per se seem to furnish the kind of education which fits people to cope with a fast-changing civilization.”
—Mary Barnett Gilson (1877–?)