Singapore’s PCG plans to reopen $1.42B luxury ski fund in Japan

Singapore-based investor Patience Capital Group (PCG) is considering reopening its $1.42 billion luxury ski project fund in Japan to new investors before the Bank of Japan (BOJ) tightens its policies, Reuters reported on Thursday.

The initial 35-billion-yen fund to transform Myoko Kogen into a top winter sports destination may increase to 60 billion yen with new investments from domestic and foreign sources.

Japan is experiencing a surge in investment and tourism, driven by a weak yen. PCG, founded in 2019 by Ken Chan, focuses on accommodation and resort properties to capitalise on these trends.

The BOJ is expected to start normalising its monetary policy soon, potentially leading to a stronger yen.

Chan believes that this year presents a significant opportunity to invest in yen assets due to the currency’s current undervaluation. He anticipates continued interest from investors in the Japanese market in the coming months.

PCG’s plan for Myoko Kogen includes developing high-end winter facilities over the next decade. The fund has already acquired 350 hectares of land, including two ski slopes, and is exploring additional acquisitions in the area.

The project aims to have two luxury hotels operational by 2028, delayed by a recent earthquake.

Future funding for the project will likely come from two more funds of similar size, with leverage to increase spending power.

The total investment target remains at 210 billion yen, but Chan suggests it could exceed this amount due to the vast development potential in the region.