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.

Our founder Perry Tan, CFA, CAIA, FRM was featured in List Sotheby's International Realty Hong Kong’s recent publication.

The 3 parties will explore real estate investment opportunities in Japan. Orion is a privately owned property and investment group based in Hong Kong and Wayfarer 株式会社 is a Japan-based tech-enabled hospitality brand that optimizes property returns with proprietary automations and a unique operating approach.‍

With the onslaught COVID-19, we have been actively looking for distressed opportunities in Japan. This hotel was put on sale by a regional cash strapped developer. We managed to purchase the hotel at over a 20% discount to theasset’s replacement cost, over a 30% discount to the asset’s appraisal value and double digits normalized cash flow yields thus providing us with a huge margin of safety.

Acquired in August 2018, Pegasus purchased this prime Tokyo residential asset which had below market rental income because the previous owner focused on occupancies over rent maximisation. We managed to obtain non-recourse financing amounting to over 60% and increased the rental income during investment period and generated capital gains once the asset was stabilized and attractive to a core investor such as the private J-REIT.

Our founder Perry Tan, CFA, CAIA, FRM was featured in Denzity’s recent interview covering investment opportunities in Japan.

This brand-new hotel is located at heart of Osaka and can cater to both leisure and business travelers. We expect to sell this hotel to a J-REIT once the asset has stabilized. This is our second acquisition for Pegasus’ Core-Plus Bridge Fund.

The Osaka hotel is a brand-new hotel that is located in the heart of Osaka and can cater to both leisure and business travelers. The Kyoto hotel was purchased at an approximately 15% discount to the seller’s original asking price. The seller, also the owner operator of the hotel was under financial distress after accepting an earlier bid which fell through having spent the deposit money and not having the funds to repay the purchase deposit.