OKINAWA, JAPAN: Berjaya Corp Bhd, through Berjaya Land Bhd (BLand), is set to expand into Japan’s 3.4 trillion yen tourism market with a focus on luxury hospitality.
This comes on the heels of its ultra-luxury US$1.12 billion 32-acre Four Seasons resort venture in Okinawa which is scheduled to complete in 40 months.
Berjaya Corp founder and adviser Tan Sri Vincent Tan Chee Yioun said that he aspires to build several hotels and resorts in Japan as the group is confident in the profitability – citing Japan’s strong tourism industry.
“We are looking at a few places. We have bought a piece of land in Karuizawa. Karuizawa is very popular in the summer. It’s a summer resort where a lot of wealthy people go. It’s two hours from Tokyo. We also bought a piece of land in Hakone. Hakone is another popular destination. However, we haven’t finalised our plans yet. For Karuizawa, we are in talks with Four Seasons, so potentially, that could be our fourth Four Seasons in Japan,” he told reporters at its Four Seasons Okinawa groundbreaking ceremony today.
However, he pointed out that for Hakone, the land the group bought is too small for a Four Seasons.
“We would like to build a Four Seasons in Hakone if we can get a bigger piece of land. So we are considering other brands. We need to discuss with Four Seasons whether they like the location and think it will do well.
“For example, for Okinawa, they say it’s a no-brainer. Okinawa will do well. And they love Yokohama (BLand’s third Four Seasons). So, it’s important for us to buy the land and see whether they like the place or not. If not, we have to look at alternatives,” he explained.
Tan said that Japan is a great tourist destination with a vibrant tourism industry.
“Most people who visit Japan have a good experience. The culture here is very courteous. Guests are well-treated, and the place is clean and almost crime-free. So, it’s a very popular tourist destination,” he added.
Although for some Japanese it may be considered expensive, he said people who come on group tours get value for their money.
“So, of course, the hotel industry does well. That’s why we came and built the first Four Seasons in Kyoto in 2016,” he said.
BLand is also the developer behind the Four Seasons Hotel & Residences Kyoto.
Tan said that Kyoto was a successful project for them which led to their venture in Okinawa. The group bought 100-acres in Okinawa in 2009.
The Four Seasons Okinawa will be a low-density resort development, comprising 127 hotel rooms, 124 condo residences, and 28 private villa residences on 32 acres of oceanfront land.
In keeping with Four Seasons’ brand standards of hospitality, the resort facilities and amenities will include indoor and outdoor pools, sports facilities, a fitness center, spa, kids club, and five restaurants that can accommodate 380 guests.
The integrated layout of the resort will allow guests and homeowners to access every amenity by foot, bicycle, or golf cart.
Tan said the apartments and villas are for sale, and the hotel will be retained.
Overall, Tan is confident that this project will be profitable for the group.
“The Okinawa resort economics will be very good. From the GDV and our land cost and construction cost, I think we should do very well,” he said.
Tan remarked that the development will go on sale at US$3,500 per square foot. Meanwhile, the villas will be US$4,000 per square foot.
“Assuming if we were to sell everything, we can make US$400 to US$450 million profit. That’s after tax. And also, we did this with a tax structure that is quite efficient.
“We incorporated the company, and the subsidiary is in Singapore. Singapore has this tax agreement with Japan, where the profit for this development is taxed at 10%,” he said.
He added the same thing was done for Kyoto. The tax incentive is called TMK. In the TMK structure, a tokutei mokuteki kaisha (TMK) (special purpose limited liability company) is used as the SPC where investors can invest by way of preferred equity.
Regarding the Okinawa Four Seasons project, he explained that they have acquired 100 acres of land, with plans to allocate 32 acres for the Four Seasons resort, ideally situated along the seafront with beach access. Additionally, they have an additional 68 acres of land situated towards the back.
Tan said the 68 acres will be developed after the completion of the Four Seasons resort.
He added that there are proposals from Japanese corporations, including Mitsui and Mitsubishi, to build premium outlets.
“They are both interested. So, we told them maybe we want to get Four Seasons going first before we look into that. And then, of course, we can build other things. We have another 68 acres,” he said.
Tan highlighted Okinawa’s appeal to wealthy individuals due to its year-round pleasant climate, with mild winters inviting outdoor activities, and pristine waters drawing enthusiasts for diving, snorkeling, and sea adventures.
“Over 7 million Japanese visit here. And there were another 1 million from overseas, Korea, Taiwan, China. It is a good tourist destination for people who live around, even countries nearby. So we believe that a lot of wealthy people will buy. And we believe that some corporations will buy to house their guests here,” he said.
The Okinawa Four Seasons resort is the first Four Seasons “resort” in Japan. Tan said the rest are all located in cities, with Tokyo having two, Kyoto and Osaka one each, all within city limits.
Going forward, Tan said the group’s third confirmed Four Seasons will be in Yokohama.
“It’s confirmed. We won the land on the beach from the city government. It was based on a contest, and the price is fixed. When they proposed building the Four Seasons, we won the land in Yokohama. But there are still quite a few things to sort out for this project,” he added.
Source: The Sun Daily
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