Odyssey Capital hits first close of Japan-focused PE real estate fund

Odyssey acquired Shosenkaku Kagetsu, a Japanese-styled traditional ryokan (Japanese inn), in Aug 2018.

Odyssey Asset Management Ltd, a sister company of alternative asset manager Odyssey Capital, has announced the first close of its Japan-focused private equity real estate fund – Odyssey Japan Boutique Hospitality Fund – with aggregate commitments of $200 million.

The fund, launched in June 2018 to focus on the acquisition of boutique hospitality assets throughout Japan, achieved the first close at the end of January. It bagged commitments from high net-worth individuals, family offices, and large financial institutions across the Asia-Pacific region.

Odyssey Capital Group co-founder and president Daniel Vovil told DEALSTREETASIA in an email interview that the fund is targeting $500 million in equity and total asset size of $1 billion by the end of the year. The next close for the fund is expected to take place around May this year.

The fund will focus on mid-sized hospitality real estate assets valued between $5 million and $50 million. This price range, Odyssey said, demonstrated the best value to secure “under-valued, off-market hospitality properties with the most value-add potential”.

In a statement, Odyssey said the purpose of the first close was to acquire one of the fund’s flagship projects, Project Falcon, a 24 machiya (traditional townhouse) property portfolio situated in the heart of Kyoto. Odyssey will refurbish and convert the properties into a single urban luxury machiya resort.

“The acquisition of Project Falcon makes the Odyssey Japan Boutique Hospitality Fund one of the largest owners of machiyas in Kyoto,” the firm said.

Project Falcon brings the fund’s total hospitality assets in Japan to three. In August 2018, the Odyssey Japan Real Estate investment acquired Shosenkaku Kagetsu, a Japanese-styled traditional ryokan (Japanese inn). It also purchased Hotel Owan Hanami, a boutique hotel in Kyoto, in October.

The fund is expected to make three new acquisitions in the first quarter of this year, including a boutique hotel in Shibuya, one of Tokyo’s most popular suburbs, and a number of ryokans on the Izu Peninsula.

Also Read:

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.