BusinessExciting News: Singapore's PCG to Reopen Fund for Luxury Japan Ski Resort...

Exciting News: Singapore’s PCG to Reopen Fund for Luxury Japan Ski Resort Due to Weak Yen Attractions

Reopening of Fund for Luxury Japan Ski Resort by Singapore's PCG Due to Weak Yen Appeal
© Reuters. A map showing the Myoko Mountain Resort Zone area is displayed on a sign at a snow-covered rest spot along the Joshinetsu expressway in Myoko, Niigata Prefecture, Japan on March 8, 2024. REUTERS/Mariko Katsumura/File photo

By Mariko Katsumura and Rocky Swift

Singapore’s Patience Capital Group (PCG) Seeks to Expand Fund for Luxury Ski Resort in Japan Amid Weakening Yen

PCG, the Singapore-based investor behind a substantial $1.42 billion luxury ski project in northern Japan, is currently considering reopening its fund to accommodate new investors looking to capitalize on the weakening yen before potential tightening by the Bank of Japan.

Originally launched at 35 billion yen ($237 million) last year to enhance Myoko Kogen in Japan’s Niigata prefecture into a premier winter sports destination comparable to Aspen and Whistler, PCG’s fund may see expansion to 60 billion yen with fresh investments pouring in from both local and international investors according to PCG founder Ken Chan.

Current Investment Climate in Japan

Japan is currently witnessing a surge in investment activities and inbound visitors, driven by a weak yen that presents the country as an attractive destination for foreign investors. Ken Chan established PCG in 2019 to leverage these opportunities by investing in accommodations and resort properties.

With the Bank of Japan expected to initiate a normalization process next week after nearly two decades of relaxed monetary policies, along with potential interest rate adjustments by the Federal Reserve, the yen is anticipated to strengthen from its near three-decade lows, as noted by Chan.

“From a macroeconomic standpoint, this year presents a significant opportunity to allocate funds to yen-denominated assets, given the current undervaluation of the yen,” said Chan, who established PCG after a successful tenure with Singapore’s GIC sovereign wealth fund, where he served as the Japan head.

“In the upcoming months, we anticipate a growing number of investors seizing investment opportunities in this market,” he added.

Development Plans and Expansion

Last year, Chan, a Japan native, detailed plans to transform the Myoko Kogen area into a luxury winter destination, targeting affluent global travelers passionate about snow sports. The fund, designed for institutional and high-net-worth investors, has acquired approximately 350 hectares of land, including two existing ski slopes.

In collaboration with the Tokyu group, which owns the nearby Madarao Tangram resort, efforts are underway to amalgamate operations and manage the mountain as a unified entity. Additionally, PCG remains open to potential acquisitions of neighboring resorts in the region.

Despite an estimated decade-long construction timeline, Chan aims to have the initial two luxury hotels operational by 2028. This timeline has been slightly delayed by a significant earthquake on the Noto peninsula on January 1, causing a strain on construction resources.

PCG intends to raise funds for the project through two additional 35 billion yen-sized funds in the future.

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