Tiffany & Co. Completes £73 Million Sale Leaseback of Flagship Store in London

Tiffany & Co. Web Site - October 19, 2007

Tiffany & Co. (NYSE: TIF) reported today that it has sold the building housing its flagship store in London for the price of £73,000,000 (approximately $149,000,000 at the sale date) and simultaneously entered into a 15-year lease with two 10-year renewal options. Tiffany had acquired the building at 25 Old Bond Street and an adjoining building at 15 Albermarle Street in 2002 for a total cost of $43,000,000 (U.S. dollar equivalent at the acquisition date). The acquisition was made in order to combine the buildings, renovate and reconfigure the interior retail selling space; that work was completed in 2006, allowing the Company to complete this sale and leaseback as planned.

This transaction results in a deferred, pretax gain of approximately $73,000,000, which will be amortized in selling, general and administrative expenses over a 15-year period, and is not expected to have a significant effect on future earnings. The Company plans to use the proceeds from the sale for general corporate purposes.

Michael J. Kowalski, chairman and chief executive officer, said, "Since opening our flagship store in London in 1986, Tiffany has developed a substantial and highly successful presence in London. Combining the Old Bond Street and Albermarle Street properties into a spacious new store has generated sales growth beyond our expectations, and we had always planned to pursue a sale-leaseback transaction following the completion of construction. We now operate five stores in London, with a sixth opening next year, and continue to be excited about the growth potential we envision in that very important market. Sphere: Related Content