Pegasus today announces the sale of a multifamily residential building located in Shibuya to a local real estate company.

The hotel acquired by Pegasus Capital last December at below replacement costs and close to double digits normalized cash yields has relaunched with a new operator and a hotel name, ORI Rokkaku.

This boutique hotel was purchased at attractive valuations because the previous owner could not service their debt obligations thus resulting to a forced seller scenario. Through our networks in Japan, we managed to negotiate with the seller’s financing bank directly and managed to negotiate and purchase the asset at below its replacement cost and close to double digits normalized cash flow yields.