Go Native 70 Posted October 9, 2012 Share Posted October 9, 2012 Don't think anyone else has posted about this yet? Thai Company Buy Kiroro Ski Resort It was recently reported in the Bangkok Post that Perfect Property International have acquired the Mitsui-owned Kiroro Ski Resort for 874m Baht (2.2 billion Yen, 27m USD). They plan to move quickly into the development phase where they plan to build 60 villas and 150 condominiums. The new owners will be able to tap into immediate sources of revenue through the 420 hotel rooms and the ski resort which is just an hour or so from Sapporo. While the organic feel of a resort developed over time will be hard to achieve in Kiroro, it does have the considerable advantage of being owned by a single entity which will make it possible for them to move much faster. In addition, there is a considerable amount of developable land which is not subject to any tricky regulatory issues. It will be interesting to see how Kiroro fits in with the increasing regional offering which is being provided to domestic and international visitors. original article in Bangkok Post: http://www.bangkokpost.com/business/economics/310121/pf-buys-japanese-ski-resort Keen on drawing Asian tourists to Japan, the SET-listed developer Property Perfect Plc (PF) is set to develop the first phase of villas and condominiums at a ski resort in Hokkaido worth 3 billion baht. As its first international venture, the company invested 770 million baht in the takeover of Kiroro Ski Resort in Hokkaido from Mitsui Fudosan, Japan's top real estate developer under the Mitsui Group. "We view Japan as a suitable target due to the size and stability of its economy and the cordial ties that have always existed with the Japanese due to their large investments in Thailand," said chief executive officer Chainid Sirimanee, adding that the takeover price was inexpensive. In addition to a land bank of 292 rai, assets acquired include two hotels, ski infrastructure and a youth dormitory, all of which are in operation. Mr Chainid said villas and condominiums valued at 1.5 billion baht each will be constructed on 50 rai. The villas will house 60 units, costing around 30 million baht each, while the condominium will have about 150 units priced at about 10 million baht each. He said the first stage of development will kick off next year, while revenue from sales is expected to be realised from 2014 onwards. PF projects to break even in 2016. Meanwhile, the company expects to realise 1.2 billion baht in revenues from the hotels as early as 2013. The net margin for the hotels will be around 5-10%. The Hotel Piano and the Mountain Hotel house 282 and 140 rooms respectively, and both are in operation. Company director Sirirat Wongwattana said all the assets acquired are in good shape and can bring in revenue for the company immediately. Revenue from the sale of the villas and condominiums are expected to be realised starting in 2014, increasing total revenue from investments in Japan to 2 billion baht. The ski market on Hokkaido island has been growing in the last decade, frequented by not only Japanese tourists but also those from China, South Korea, Hong Kong, Taiwan and Australia. The island welcomed 600,000 visitors in 2009, with more than 80% hailing from China, Hong Kong, South Korea, and Taiwan and the rest from Southeast Asia and Australia. In 2012, the total number of tourists is expected to reach 800,000. "Although our main target will be East Asians, we think there's a lot of potential for Southeast Asian tourists to grow as well," said Mr Chainid, adding the company intends to reorient Kiroro Ski Resort to accommodate more international tourists. The resort is famous for its high-quality snow and ski runs, but it can be used in all four seasons for camping and trekking. In addition to its investments abroad, the company plans to expand condominium and villa development to Chiang Mai, Phuket and Hua Hin. "Investing in these new places will reduce our risk and diversify our sources of revenue," said Mr Chainid. PF shares closed yesterday on the SET at 1.06 baht, down one baht, in trade worth 34.9 million baht. Link to post Share on other sites
Slippery Jim 65 Posted October 9, 2012 Share Posted October 9, 2012 Very interesting! Thanks for posting, GN. Curious to see where this will lead in the next few years. Link to post Share on other sites
Mike Pow 52 Posted October 9, 2012 Share Posted October 9, 2012 My understanding is this winter the focus will be on day to day operations and marketing. The building work is due to start at the end of the 12/13 season, so some time in late April / early May. So at least another winter of goodness Link to post Share on other sites
Chriselle 158 Posted October 9, 2012 Share Posted October 9, 2012 Well, you know the Japanese weren't going to be doing any kind of development. Even maintenance seems to be a tall order for the locals. Link to post Share on other sites
1 4 Posted October 9, 2012 Share Posted October 9, 2012 Well, you know the Japanese weren't going to be doing any kind of development. So it's a race thing is it? Link to post Share on other sites
Chriselle 158 Posted October 9, 2012 Share Posted October 9, 2012 Huh?? Link to post Share on other sites
1 4 Posted October 9, 2012 Share Posted October 9, 2012 Can't read? Larger letters may help: Japanese are not capable of any kind of development? Link to post Share on other sites
RobBright 35 Posted October 9, 2012 Share Posted October 9, 2012 Can't read? Larger letters may help: Japanese are not capable of any kind of development? Yes, they are. Just not at any break neck pace though that tourist places require. Is that ok for you? Link to post Share on other sites
Chriselle 158 Posted October 9, 2012 Share Posted October 9, 2012 1......Your posts just scream....FAIL... Please spare us. Link to post Share on other sites
1 4 Posted October 9, 2012 Share Posted October 9, 2012 Wow, you sound like a real expert, Man_In_Japan.... what is it you do again, teach English? Link to post Share on other sites
RobBright 35 Posted October 9, 2012 Share Posted October 9, 2012 Wow you sound like an expert Man_In_Japan.... What is it you do again, teach English? Straw man argument. What my profession has to do with this is irrelevant. What are your supporting points for showing that the local business can successfully develop a resort to cater for tourists? Link to post Share on other sites
@tokyo 14 Posted October 9, 2012 Share Posted October 9, 2012 Is teaching English in Japan a "profession"? Link to post Share on other sites
Chriselle 158 Posted October 9, 2012 Share Posted October 9, 2012 Kind of like "pro surfer"... Link to post Share on other sites
Chriselle 158 Posted October 10, 2012 Share Posted October 10, 2012 Well, you know the Japanese weren't going to be doing any kind of development. So it's a race thing is it? OK... I can't leave this alone. I'm really interested in how you see my post as being anything to do with "race". Race.......?? What the hell is that anyway? I'm sure you're going to tell me your F'ed up opinion of the definition. Link to post Share on other sites
rider69 18 Posted October 10, 2012 Share Posted October 10, 2012 Ignore the bait or this is going to go way off topic. Link to post Share on other sites
pie-eater 207 Posted October 10, 2012 Share Posted October 10, 2012 Link to post Share on other sites
Chriselle 158 Posted October 10, 2012 Share Posted October 10, 2012 Ignore the bait or this is going to go way off topic. ya....for sure. Link to post Share on other sites
pie-eater 207 Posted October 10, 2012 Share Posted October 10, 2012 The internet police are wise. But serious hat on for a change, why were "the Japanese" not going to develop? Link to post Share on other sites
Popular Post Go Native 70 Posted October 10, 2012 Author Popular Post Share Posted October 10, 2012 Wow, you sound like a real expert, Man_In_Japan.... what is it you do again, teach English? What on earth do you know about the ski industry in Japan 1? How many years have you worked in it? In case you don't know the Japanese ski industry has been in decline for years now. Every year more and more resorts close for good. Very few resorts that are owned by Japanese companies are making any money and even fewer are actually investing money in upgrading infrastructure or developing new accommodation and base facilities. Out of the 100's of resorts throughout the country you could probably count on one hand those that are investing more money into the resort. Most resorts are like stepping back in time around 20-30 years. The economy in Japan has been in recession or stagnant for a couple of decades now. Although interest rates are practically zero eactually securing financing from the banks for anything is not easy. And new development of anything, especially in rural areas is limited (unless it's some pork barrelling for mostly useless infrastructure projects like all the infamous roads and bridges to nowhere you find in almost every prefecture). So in recent years the bulk of investment in ski resorts in Japan I'd say has come from foreign investors, from countries where the economies have been booming not stagnating. So initially in Niseko it came from Australia and in more recent years it's been coming from Hong Kong, mainland China, Malaysia, Singapore and Thailand and is now branching out to many more ski areas. For most resorts the only market that is growing for them is the foreign market. And it's mostly only been due to foreign investment and marketing. Japanese companies on the whole (at least in the ski industry) are in my experience absolutely terrible at understanding the foreign market and providing the facilities and services required by it. So Chriselle's comment is by no means based on race it's based on long years of experience and frustration at watching the industry dying a slow death with extremely few resorts in the country making any investment in upgrading old infrastucture or building new infrastructure or facilities. It's just a reality of the Japanese ski industry that most recent investmnet in it has been from foreign companies. 3 Link to post Share on other sites
1 4 Posted October 10, 2012 Share Posted October 10, 2012 Wow, you sound like a real expert, Man_In_Japan.... what is it you do again, teach English? What on earth do you know about the ski industry in Japan 1? What on earth does it matter? (To quote Man in Japan) So in recent years the bulk of investment in ski resorts in Japan I'd say has come from foreign investors Well, I'd say you are wrong. There have been plenty of changes at Japanese ski resorts in recent years. You just don't know this because you (think you) know everything that there to know about Niseko, apparently think that applies to all of Japan and obviously know very little about anywhere outside of that area. All dressed up in carefully constucted and impressive sounding sentences. Link to post Share on other sites
RobBright 35 Posted October 10, 2012 Share Posted October 10, 2012 What on earth does it matter? (To quote Man in Japan) When did I say that?! Well, I'd say you are wrong. There have been plenty of changes at Japanese ski resorts in recent years. You just don't know this because you (think you) know everything that there to know about Niseko, apparently think that applies to all of Japan and obviously know very little about anywhere outside of that area. All dressed up in carefully constucted and impressive sounding sentences. Please provide some counter evidence against Go Native. Year upon year, resorts have been closing across Japan, not just in Hokkaido. The only major development I can think of that was worthy of news in Hokkaido, is the Hokkaido Shinkansen, but that has been years in development. Heck, they have even said they would allow 20 years for the development of the line to Sapporo. Link to post Share on other sites
1 4 Posted October 10, 2012 Share Posted October 10, 2012 What my profession has to do with this is irrelevant. Link to post Share on other sites
RobBright 35 Posted October 10, 2012 Share Posted October 10, 2012 Wow, you sound like a real expert, Man_In_Japan.... what is it you do again, teach English? What on earth do you know about the ski industry in Japan 1? What on earth does it matter? (To quote Man in Japan) So your knowledge of the ski industry is irrelevant to this conversation then? Riiiiiiight.... Link to post Share on other sites
1 4 Posted October 10, 2012 Share Posted October 10, 2012 Year upon year, resorts have been closing across Japan, not just in Hokkaido. The only major development I can think of that was worthy of news in Hokkaido, is the Hokkaido Shinkansen, but that has been years in development. Heck, they have even said they would allow 20 years for the development of the line to Sapporo. This is just off the top of my head, it is not supposed to be any kind of definitive list. The Mt Kosha resorts Ryuoo Ski Park / Kawaba The changes in Hakuba and related 日本スキー場開発 J Mountains Group There have been plenty of things going on. You just don't know about them. Doesn't mean things are not happening. Link to post Share on other sites
RobBright 35 Posted October 10, 2012 Share Posted October 10, 2012 Japanese development of the Joetsu Shinkansen - I'm happy they made it, but at what cost? Great cost planning there. $6.3 billion there.... Link to post Share on other sites
Recommended Posts