Executive Summary
Japan Leisure Hotels Limited is a newly incorporated, Guernsey registered, closed-ended investment company, which has been established to take advantage of the opportunity to invest in the Japanese leisure hotel sector. On Admission, the Company will complete the acquisition of an interest in a portfolio of five hotels for a consideration of T19 million, payable by way of the issue of 38 million new Ordinary Shares. All of these hotels are currently operating as leisure hotels under the 'Bonita' brand and are generating attractive returns. These hotels, which are managed by New Perspective, have been valued by Colliers at approximately T21 million as at 30 November 2007. The Company's investment objective is to provide Shareholders with an attractive absolute return, generating a stable and growing income stream once fully invested whilst also benefiting from an asset backed investment in an improving real estate environment. New Perspective, the company appointed to manage the portfolio in Japan, will actively seek to acquire existing leisure hotel properties in Japan, which may then be refurbished and re-branded. The investment opportunities that New Perspective will pursue will typically be properties located in and around large population centres in Japan. Conditions within the leisure hotel sector in Japan have created the opportunity to buy distressed or underperforming leisure hotels. This strategy has been employed by New Perspective for most of the assets within the Existing Portfolio. The Company will be a passive investor. The Company's investments will be made solely in leisure hotel assets in Japan however the Company will seek to invest in a broad range of assets within this class.
