Berjaya lands good hotel deal in Japan

An artist’s impression of Four Seasons Hotel Kyoto.

It is a rainy day in Kyoto, Japan, when executives from Berjaya Land Bhd (BLand) bring a group of Malaysian journalists to see for ourselves the site where the first luxury hotel in the city the Four Seasons Hotel Kyoto will be built.

The rain does nothing to dampen our spirits as we stand on the 5-acre site in historical Higashiyama-ku, situated among beautiful and serene surroundings and the great heritage sites of Kyoto, a city which was once the imperial capital of Japan.

Discussions for this project took more than two years and has finally borne fruit, Tan Sri Vincent Tan, the founder of Berjaya Corp Bhd, the parent company of BLand, tells us.

“Armed with little more than a vision and a conviction to succeed, we approached the city of Kyoto to work together, not merely to build a hotel but to be given a chance to craft an experience like no other in the world,” he says later in a speech at a ceremony to mark the collaboration between BLand and Four Seasons.

BLand's move into Kyoto marks its foray into Japan after two other projects in North Asia in Jeju, South Korea, and Beijing, China.

The company purchased the 5-acre site from the Takeda family, a prominent family of doctors who owns several hospitals and elder care facilities across Kyoto.

The site, which itself used to house a hospital, will cost BLand US$320mil or close to RM1bil to be developed into a luxury hotel with 186 rooms.

The figure includes the acquisition price of the land.

While the exact financing structure has yet to be determined, RHB Bank Bhd is the principal financier and the entire project is expected to be funded by a combination of equity, internal funds as well as bank borrowings.

Return of investment is estimated to be between 5% and 10% and is expected to come “pretty fast”, given that Kyoto gets some 50 million visitors per year, making it the most visited city in Japan, according to Tan.

Construction will start next March and the hotel will officially open its doors to guests in early 2015.

“The hardest part of the project, which is securing approval from the city, is over. With financing in place, we do not foresee major challenges during the construction period,” BLand executive director Leong Wy Joon says.

Kyoto is strict with its building guidelines, given that many sites in the city enjoy a Unesco World Heritage status. Hence the process to obtain the relevant permits took some time, says Leong. Understandably, Leong is excited about this project.

Kyoto, according to him, has a huge pent-up demand for luxury accommodation. It currently only has two international brands the Hyatt and Westin. A Ritz-Carlton will be ready next year.

“We are not worried about demand at all. Demand should come from both business and leisure travellers,” Leong says.

As a luxury hotel positioned also as an “urban resort”, Four Season's room rates will start from 55,000 yen (RM2,200), compared with Kyoto's current average hotel rates of between 28,000 yen and 35,000 yen per night.

The Four Seasons Hotel Kyoto will be BLand's signature and flagship development in Japan.

For this reason, BLand is pulling out all the stops to build a hotel which Tan says “will be one of the most iconic in the world on completion”.

The property itself will have an estimated built-up area of 8,106 sq m with four floors and three basement floors. It will be built with a combination of modern styles and traditional Japanese design.

In other words, expect the hotel to be infused with traditional Japanese arts and crafts, says Leong.

“Age-old traditions will go hand-in-hand with modern luxuries and it will have the understated elegance of a traditional ryokan,” he enthuses.

He points out that among the special facilities, the hotel will have a specially dedicated hall for wedding ceremony.

Other facilities include a banquet hall, main and fine dining areas, fitness gym, pool, spa and shops. An existing pond is expected to be one of the hotel's main attractions, once it is further beautified.

In terms of location, the hotel will be quite ideally located, being less than 2km away from the Kyoto train station, which is the main entry point into Kyoto as well as being the main stop for all the bullet trains going into the city.

“It's an excellent piece of land. We were quick in deciding that we wanted it ... and acted quick as well,” Leong says.

When it is completed, the Four Seasons Hotel Kyoto will be close to tourist sites such as the Myohoin, Sanjyu Sangendo and Kyoto National Museum as well as to various cultural locations such as Gion, the neighbourhood of the famed geishas.

By The Star

Japan project will fare well, says AP Land

KUALA LUMPUR: Asia Pacific Land Bhd (AP Land) is confident its maiden residential overseas project called Shiki, to be built at Niseko, Japan, will fare well despite the recent earthquake and nuclear scare there.

Its joint managing director Low Su Ming said at present, many investors are still keen but “have taken a wait and see approach”.

“We have had three pull outs so far but at the same time we have had 20 confirmed buyers even before the groundbreaking ceremony which will take place on April 10,” she told the media yesterday.

Shiki, a fully furnished serviced apartment project, is being built by APL Niseko Property TMK, a subsidiary of AP Land Bhd with gross development value of about RM220 million.

Each unit of the freehold property, which comes in one to three bedrooms, is priced between RM1.8 million and RM4.97 million.

The project would be completed and delivered on schedule by December 2012.

“Construction cost would not escalate as we have already locked in the prices,” she said.

On whether the company would take a different marketing approach (now), Low said: “This is not the time to talk about selling. We are very confident in Niseko as it still holds the promise of a growing wealth in Asia, which we truly believe in.”

Niseko resort brand manager Derek Kennewell said AP Land expected to sell at least half of the 69 units before completion date while the rest would probably be sold once its completed.

Kennewell works for LJ Hooker, an Australian-based real estate company which has been roped in by AP Land to promote Shiki.

“So far all the buyers are Malaysians and Singaporeans. We may target Chinese buyers now.

“This is definitely a good investment with a yield of between 4 and 5 per cent,” added Kennewell.

By Business Times

AP Land to complete resort project despite March 11 quake

KUALA LUMPUR: Asia Pacific Land Bhd (AP Land) plans to complete the Shiki Niseko project in Niseko, Japan by the end of 2012 despite the March 11 earthquake and tsunami in the country.

AP Land joint managing director Low Su Ming said the ground-breaking for the project would be held next week.

“We have awarded the contract for the construction of the project and locked in the cost. So, we won't be affected by the expected increase in the cost of construction materials in Japan as a result of the reconstruction of the devastated areas caused by the earthquake and tsunami. Despite the catastrophe, we are not overly concerned over the impact to our project as the disaster area is located more than 600km away from Niseko.

“We are still confident in the vast untapped potential of Niseko as an international ski resort to cater to the growing affluence in various Asian markets,” Low added.

The company would be organising road shows to Australia and other target markets, she said, adding that the buyers were from Hong Kong, Singapore, China, Malaysia and Australia.

Shiki Niseko is AP Land's maiden development in Japan. The project comprises 69 units of one, two and three bedroom high-end residences with commercial component in the heart of the ski village, known as central Hirafu.

About 60% of the project have been booked and of this, 30% of the buyers have paid the downpayment.

While most investors had taken a long-term position and were prepared to ride out any short-term volatility, two to three buyers might pull out from the deal due to concerns about radiation from the quake-stricken nuclear plant in Fukushima, she said.

To address the concerns, AP Land had invited property consultancy LJ Hooker Niseko Resort branch manager Derek Kennewell to brief the project's buyers and the media on the actual situation in Niseko.

According to Kennewell, Niseko is located more than 600km from the disaster zone and there is no threat of radioactivity contamination.

By The Star

AP Land sees good potential in Niseko

The influx of tourists and investors from around the world, especially Asia and Europe, is set to change the real estate and infrastructure landscape of one of the most popular ski resort destinations in the world, Niseko in Hokkaido, the northern island of Japan.

Currently there is still a lack of awareness on the potentials and opportunities there, which explains why it is still a relatively untapped market as far as real estate development and investment is concerned.

According to Asia Pacific Land Bhd (AP Land) joint managing director, Low Su Ming, the pioneer developers from Australia, who are generally small fit outs, have taken more than 10 years to develop Niseko to what it is today.

“The rest of the world are only now beginning to take note of Niseko. As such, properties here are still affordable but it is not so much about the cost of investment but the propensity for the properties to improve in value that is of great interest,” Low tells StarBizWeek.

Low believes Niseko will continue to enjoy growth, adding that investment returns have been growing in recent years, with further capital growth expected.

“Niseko is clearly a world-class ski location, with its real estate still a fraction of the price of other comparable international destinations.

“This place, ranked by Forbes as the second snowiest place on earth and famed for its long ski season (from November to April yearly) and fine powder snow, has seen tourist arrivals doubling every year.

“We see great potential and opportunities in this area. At this moment, demand for accommodation far outpaces supply,” Low says.

AP Land is undertaking its maiden development in Japan – Shiki Niseko comprising 69 units of 1, 2 and 3 bedroom high-end residences with commercial component in the heart of the ski village, known as central Hirafu. The project is scheduled for completion by the end of 2012.

Low says most investors have taken a long-term position and are comfortable to enjoy their asset and ride out any short-term volatility.

LJ Hooker Niseko Resort branch manager Derek Kennewell concurs, saying that if Niseko’s attractions can be elevated to the level of some of the more mature resorts in Europe and North America over the next decade or two, “then we may see big tourism growth numbers, which will drive property investment.”

“Niseko offers something unrivalled in Asia, with access that cannot be beaten by Europe and America. The tourism market here is one of the biggest in the world, and if the bullet train makes it to Niseko in the coming decades it will bring a massive influx of domestic tourists,” he says.

He adds that Niseko is growing organically at its own pace.

“Many still think of Niseko as an anomaly, and are waiting for it to dry up as it did in the Japanese Bubble era in the late 80s and early 90s leading to the ‘lost decade’.”

“In actual fact, we are under-supplied when it comes to commercial premises, and more shopping facilities will bring a new level of tourists to the area.

“No doubt this will take time to manifest,” he says.

In recent years, big property players from Hong Kong and Malaysia are making their presence felt in Niseko with land and whole villages exchanging hands.

Their plan is to cater to the growing affluence in various Asian markets and higher demand for more lifestyle properties in Niseko.

Hong Kong’s PCCW Ltd has planned to add 14,000 beds in Hanazono over the coming decade, including a couple of hotels and village shops and services.

Besides APL, another Malaysian corporation, YTL Corp’s hospitality arm YTL Hotels & Properties Sdn Bhd has last April purchased Niseko Village located at the southeastern foothills of Mt Niseko An’nupuri.

Kennewell says that with the Chinese yuan rising steadily against the greenback in the past several years, China represents a huge market opportunity as it is now much cheaper to buy a property in Japan.

On what are the missing links in the Niseko tourism and real estate landscape now, he says: “Boutique shops, and personal services.

“There is also a need for more cultural and international events to attract guests all through the year, though these are improving year on year,” he adds.

By The Star

Mapletree plans US$928mil Japan property fund

TOKYO: Mapletree Investments, a real estate firm wholly-owned by Singapore state investor Temasek Holdings, plans to launch a Japan property fund of around 80 billion yen (US$928mil) this year in a bid to expand in the country’s property sector ahead of its rivals.

The new fund, with 30 billion yen of equity, will invest in business-related properties such as data centres, research and development facilities, and office buildings just outside central Tokyo and other big cities, Terence Heng, general manager of Mapletree Investments Japan, told Reuters in an interview.

“We need to get ideal properties now. It’s likely to become difficult to see those attractive deals if we miss the chance now ... The opportunity window is open for a year or two, or even shorter period than that,” he said.

Mapletree, which opened its Japan office in 2007, has been ramping up its investment in Japanese logistics facilities mainly for its Mapletree Logistic Trust, which owns warehouses and other industrial properties across Asia.

In Japan, the Singaporean company manages 12 properties, mostly logistics assets, worth 60 billion yen. But it aims to more than triple this to 200 billion yen in the next two to three years before competition heats up in the market, Heng said.

”We should proactively buy properties if they are good,” he said.

By Reuters

Berjaya plans US$500m Japan project

Berjaya, controlled by Tan Sri Vincent Tan Chee Yioun, plans to build a hotel and residential properties on Okinawa Island

The Berjaya group is planning to develop a US$500 million (RM1.6 billion) property project in Japan, making it the second major Malaysian firm to invest in the Land of the Rising Sun in less than a month.



On April 15, YTL Corporation completed the purchase of a prime Japanese resort for RM205 million and it plans to purchase more properties there.

Berjaya, controlled by Tan Sri Vincent Tan Chee Yioun, plans to build a hotel and residential properties on Okinawa Island in the south of Japan.

Development is due to start in 2011 or 2012 and the work will take about five years.
Executive director of Berjaya Hotels and Resorts Valen Tan said the group was building a community which will have exclusive residential properties.

Berjaya Hotels and Resorts is the leisure arm of Berjaya Land Bhd.

"The US$500 million is for the entire project. A huge portion, 80 per cent, will be for the hotel and residences," Tan told Business Times in an interview.

"We are in the process of acquiring land there (coastal area in southern Okinawa), 90 per cent of the land (36.45ha) has been acquired, there is still about 10 per cent (4.05ha) to be acquired from the (land) owners," Tan said.

The up-market hotel and residences project will have about 200 rooms.

"We are looking at possibly starting development in one-and-a-half to two years' time when the planning, zoning and permits will come through," he said.

Berjaya has yet to decide if the residences will be sold or leased out.

Tan said that the island is an ideal location as it offers year-round sunshine, compared with other parts of Japan where it snows.

Berjaya Hotels operates six hotels in Malaysia and five hotels abroad. Locally, its top performing hotels are Berjaya Langkawi Resort, Berjaya Redang Resort and Berjaya Times Square Hotel in Kuala Lumpur.

Abroad, its best performing owned and managed properties include its two properties in Seychelles - Berjaya Beau Vallan Bay Resort & Casino and Berjaya and Berjaya Eden Park in London.

It also owns some hotels which are managed by international hotel chains including the Intercontinental Hanoi Westlake Hotel and Sheraton Hanoi Hotel and Towers in Vietnam.

BLand is also building a US$3 billion (RM9.6 billion) resort-type township on a 74.4ha land on Jeju island in Korea.

The development will feature 600 mid-rise apartments, 200 villas and a five-star hotel with 250 rooms and a casino hotel with 500 rooms, a shopping centre and a medical centre.

By Business Times

Tokyo is best Asian city to buy real estate

TOKYO overtook Shanghai as the best Asian city to buy real estate as investors seek less risky investment for 2009, a survey by the Urban Land Institute and PricewaterhouseCoopers LLP showed.

The Japanese capital has the best prospects and lowest risk among the 20 locations covered by the Emerging Trends survey.

Singapore is in second place and Hong Kong is third, according to the ULI, a Washington-based research firm, and PricewaterhouseCoopers, a New York-based accounting firm.

By Bloomberg

AP Land’s luxury project in Japan

An artist's impression of the Shiki Niseko

ASIA Pacific Land Bhd (AP Land) will be breaking into Japan’s lifestyle property market with the upcoming launch of its maiden project in Niseko, Hokkaido by the year-end.

“Lifestyle projects are in vogue in Japan to cater to the well-heeled and savvy travellers. We are also exploring opportunities in Osaka and Tokyo,” AP Land joint managing director Low Su Ming told StarBiz.


Low Su Meng

AP Land’s resort project, called Shiki Niseko which means four seasons, is a high-end residential development located in Niseko, a popular ski-resort destination.

Low said there were vast opportunities to be tapped in China, Singapore, Hong Kong, Taiwan, Australia and Russia, for the resort-type property developments.

The project will generate an estimated gross development value of US$52mil.

Located in the most sought after part of Niseko-Hirafu, the project is set to make waves with its unique design.

Low said the project will be designed by internationally acclaimed architect DBI.

“Located centrally with good access to the ski lifts, Shiki is built over a 3,082 sq metre planned space with seven storeys of architectural ingenuity,” she said.

There will be a combination of 45 fully furnished two- and three-bedroom apartments, including four penthouses. The units will be priced from US$1mil to US$2mil.

The land, which was acquired for RM18.9mil in February is located near ski lifts and surrounded by restaurants, bars and retail outlets.

AP Land will be the first Malaysian developer to undertake a property development in Niseko.

“The arrival of AP Land will open up Niseko to yet another growing Asian market, especially investors from Singapore and China,” she said.

Singapore is on the verge of engaging in a more vigorous way with the Niseko market while the strengthening of the renminbi against the US dollar in the past several years, had made it much cheaper for the Chinese to buy property in Japan.

“Located on Niseko’s doorstep with direct flights from Shanghai to Chitose, China represents a huge market opportunity,” Low said.

Meanwhile, major ski tour operators in Britain such as Ski Independence, Crystal, Kuoni and Inghams are also featuring Hokkaido in their tour booklets.

Low said the Niseko area would continue to enjoy remarkable growth, adding that investment return had been incredible in recent years, with further capital growth expected.

“Niseko is clearly a world-class ski location, with its real estate still a fraction of the price of comparable international destinations. Summer bookings were up by 100% this season.

Following the influx of holiday makers to the area, Niseko resort operators and the local government are working together to improve its infrastructure and amenities including shuttle bus routes, new shuttle services and high speed internet by next November.

“Niseko’s natural assets differentiate it from the other ski resorts.

“These include an average 13 meters of powder snow in an era of declining snowfalls; true four-season beauty and an unspoiled pure environment.

“Its close proximity to other fast growing Asian capital cities also ensure its rapid growth into a sought after resort destination,” Low pointed out.

By The Star (by Angie Ng)

JPMorgan eyes property financing in Japan

TOKYO: JPMorgan Chase & Co said it expects Japan's beleaguered property market to rebound and will use staff gained from its acquisition of Bear Stearns to develop its real estate financing business.

"There is a lot of interest in buying real estate right now both from domestic real estate investors and foreign investors," said Gregory Guyett, chief executive of JPMorgan Securities Japan in an interview.

"And those investors will look for financing. That's a business we think can be attractive."

JPMorgan gained some 80 employees in Tokyo when it took over troubled Bear Stearns in May, which has led it to expand its small real estate securitisation team to about 25 people.

The group, headed by a former Bear Sterns employee Rosario Antoci, may expand further depending on market developments.

In the wake of the credit crunch, a number of banks in Japan have tightened lending to small and mid-sized property firms, leading to a string of bankruptcies. But large firms have been relatively unaffected and some like Orix Corp have seen the downturn as an opportunity to go bargain hunting.

Guyett named Fortress Investment Group, Blackstone Group and Mitsubishi Estate Co Ltd as active investors in Japan.

JPMorgan has also been hiring aggressively to develop its commodities and other businesses, and anticipates overall headcount to increase by about five per cent over the next year.

"You will see us in the early part of next year with a number of senior hires," Guyett said.

Recent hires include Hiroki Kazekami from Goldman Sachs Group Inc as head of its global commodities division in Japan.

"Even though commodity prices will fluctuate up and down, it's a major business that our corporate customers and investor customers are interested in," he said.

It has hired former senior finance ministry official Yoshiaki Kaneko as a senior adviser to strengthen government and regulatory relationships, and Christopher J. LaFleur as head of government relations and corporate responsibility.

LaFleur once served as US Ambassador to Malaysia.

By Reuters

Japan to reduce overseas construction aid

TOKYO: Japan plans to cut its official aid for construction projects in developing nations by 15 per cent over the next five years, a foreign ministry report showed yesterday.

Officially pacifist Japan, the world’s second largest economy, relies on development aid, particularly low-interest loans, to promote its foreign policy.

But the government report said Japan would seek to “streamline aid projects by reducing costs and improving content.”

Japan’s overseas aid expenditure has declined for the past years as the government tries to reduce a huge fiscal deficit left over from a series of economic stimulus packages following recession in the 1990s.

Japan fell to fifth place from third in the Organisation for Economic Cooperation and Development’s ranking of donors in 2007 after a 30 per cent drop in aid from the previous year.

Earlier this week an advisory panel to the Japanese government voiced concern about the reduction in official development assistance (ODA).

“The ODA is the foundation of Japan’s diplomacy,” the panel said in a statement, warning that the cutbacks could “critically harm Japan’s national interest.” In recent years, Japan has redirected aid spending to countries, many in Africa, seen as pivotal in its cherished bid for a permanent seat on the UN Security Council.

Japan also plans to end most aid to China — a rising regional competitor which has opposed Tokyo’s UN bid — by the time of the 2008 Olympics which are expected to showcase Beijing’s newfound global clout.

By AFP

Japan property investor folds, a subprime victim

TOKYO: A Japanese property investor has filed for court protection from creditors, the first listed company in Japan to collapse from tighter lending in the wake of the US subprime crisis.

Reicof Co Ltd said it had failed with debt of 42.6 billion yen (100 yen = RM3.21) as investments in hotels went sour.

"Financial and real estate markets have deteriorated in the wake of the subprime crisis and we were not able to sell properties or secure loans as expected," Masaki Nogami, a Reicof lawyer, said at a news conference yesterday.

Japanese banks are getting cold feet on property, analysts say, only giving 60-70 per cent of a building's value compared to 80-90 per cent a couple of years ago.

Industry officials say investors are pulling back from Japanese properties as they eye better opportunities in the United States and Europe to pick up distressed assets.

Japanese real estate stocks have been halved in value since mid-2007, also hit by troubles in the residential sector after tighter building codes were introduced.

Credit Suisse analyst Yoji Otani said many real estate firms had already revised down their earnings outlooks and more failures may be yet to come.

"Many real estate investment funds were struggling even before the subprime crisis, and the tighter lending conditions are delivering the final blow," he said.

By Reuters

AP Land makes foray into Japanese real estate

PETALING JAYA: Asia Pacific Land Bhd (AP Land) is making its foray into the Japanese real estate by acquiring a piece of land in Hokkaido, measuring 3,082 sq m, for RM18.9mil to build apartments.

Based on the price, the freehold land is estimated to cost RM6,132 per sq m, it told Bursa Malaysia yesterday.

The acquisition from Caymans Island-registered Tancho Investments will enable it to broaden its income into the property development sector in Japan.

“The venture is expected to enhance not only the group’s future earnings but also its profile as a regional players in property development,” it said.

AP Land had proposed to use part of the disposal proceeds of RM680mil from the disposal of City Square Centre as well as from borowings to finance the deal.

By The Star