Patience Capital Group Expands Fund for Luxury Japan Ski Resort
Singapore’s PCG Seeks New Investors for Japanese Ski Project
Patience Capital Group, a Singapore-based investor, is looking to reopen its fund for a luxury ski project in northern Japan. The $1.42 billion endeavor aims to elevate Myoko Kogen in Japan’s Niigata prefecture to the status of renowned winter sports destinations like Aspen and Whistler. PCG’s founder, Ken Chan, anticipates growing the initial 35 billion yen fund to 60 billion yen with the influx of new investors, both local and international.
Japan’s Investment and Tourism Boom Attracts PCG
Japan is experiencing a surge in investment and tourism, fueled by a weak yen that appeals to foreign visitors. Chan established PCG in 2019 to capitalize on these opportunities by investing in accommodation and resort properties. The impending normalization by the Bank of Japan, coupled with potential interest rate hikes by the Federal Reserve, is expected to strengthen the yen from its current lows, prompting investors to seize opportunities in the market.
PCG’s Vision for Transforming Myoko Kogen
Chan, with roots in Japan, envisions turning the Myoko Kogen area into a premier winter destination catering to affluent snow enthusiasts worldwide. The fund, targeting institutional and high-net-worth investors, has acquired 350 hectares of land, including two ski slopes. Collaborating with the Tokyu group, PCG aims to manage the mountain in conjunction with the nearby Madarao Tangram resort. Additionally, Chan expressed willingness to consider acquiring neighboring resorts if they become available.
Challenges and Solutions in Developing Myoko Kogen
Despite the region’s abundant snowfall and scenic beauty, Japan’s ski industry faces challenges such as aging infrastructure and declining domestic patronage. To address labor shortages, PCG plans to build dormitories and housing in the Myoko area, creating an attractive township to entice both local and foreign workers across various seasons.
Future Plans and Growth Prospects
While the full development of Myoko Kogen is expected to span a decade, Chan aims to have the first two luxury hotels operational by 2028. The project’s total expenditure, benchmarked at 210 billion yen, may surpass this figure due to extensive land awaiting development. PCG envisions raising additional funds for the project through two new 35 billion yen funds, leveraging borrowing to double the spending power.
“Investing in yen assets this year is crucial due to the currency’s undervaluation,” Chan emphasized, highlighting the market’s attractiveness for investors in the coming months.
