A business case for Japanese aimed retirement communties in Hawaii.

1. ｵﾜﾌ 長期滞在
Oahu Long-Stay Community
An overseas vacation community for Japanese retirees
Cheryl Tung
Doug Parker
Marijn Flinterman
Wendy Chow
Zuwairi Zakaria

2. Demographics
1st Generation:
• not to live with children during retirement
• whose daughters and daughter-in-laws work
in large numbers Sun City Arizona

3. Life Change
In retirement
• Husband loses:
– His routine
– Social status/network
– Sense of purpose
• Wife loses:
– Privacy
– Right to make decisions
– Social routine

4. Value Proposition
• For the Couple
– Recall the love and adventure of the early days of
marriage in a safe, intellectually-stimulating community
with the creature comforts of home.

5. The Home away from Home
Easy living concept Public Amenities
• Units allow couple to • A sento bath
continue their daily routine • Mini-market with key
• Kitchens equipped for Japanese ingredients
Japanese cuisine • Restaurants serving light,
• Japanese-style bathrooms traditional food for a social
• Serviced one a week dining experience

6. 彼女のために 彼のために
(For Her) (For Him)
• Classes in cooking local and • Japanese baseball on satellite
international cuisines, television
conversational English, computers • Hobby clubs and classes including
• Clubs including crafts, music and table tennis, fishing and surfing
dancing • Brain training tours
• Shopping excursions • Massage chairs
• Healing services including spas and • Japanese newspapers daily
beauty salons

7. Market Size
35 million Japanese
• 50+ years
• middle-/upper income
brackets
(70% of all)
• Own their own home
Cut 1 Cut 2
• 1m took int’l trips of • 1.3m visitors to Hawaii in
longer than one week 2007
• 340,000 50+ years • 450,000 50+ years

8. Product Offerings & Revenue Source
160 Residential Units Sources of Revenue
2 Bedroom One time or short-term
• 36 units
• 850 sq. ft
• Outright Purchase
• Full Kitchen, 2 bathrooms
• Timeshare
• Room Rental
1 Bedroom
• 108 units
• 574 sq. ft
Continuing income
• Full Kitchen • Maintenance Fee
• Food & Beverage
Studio
• 36 units • Spa, Tours and Auxiliary
• 350 sq. ft
• Kitchenette Irregular Long Term
• Timeshare Resale

9. Expected Timeline
Year 1 Year 2 Year 3 Year 4 Year 5
• Acquire land • Completion • Completion • All units for • All timeshare
• Finalize of the first of the last 60 outright units are fully
design 120 units units purchase are sold
• Obtain all • Rooms • Outright fully sold
required available for purchase
permits rental owners begin
• Begin • Begin to move in
marketing timeshare
campaigns services
• Break ground

10. Case for Oahu
• Non-stop flights from
Japan (235,000 seats/
month)
• Steady climate
• Large existing Japanese
community
• Ample real estate
opportunities
• Existing hospitality
infrastructure
• Favourite destination
of many Japanese
retirees

11. Future Growth

12. Stages of Investment
1) Angel
2) Commitment
3) Construction

14. Advisors
Andrew Oksner
Managing Director, Ajia Partners
Seeking to invest $1B in Japanese retirement Communities
Mark Roylance
TNS Global Research
Tokyo-based since 1994
Jonathan Harlow
Harlow Market Research
Tokyo-based 10+ years
Vasco Borges
Grace Bay Communities
Uber-lux resort developer

15. Potential risks
• Currency risk: Low; can be hedged.
• Political risk: Low; actually considered lower
than that of Japan.
• Pandemics: Low; could affect accessibility
of Oahu however.
• Declining target group: Low; declining Japanese
population countered by increasing
wealth. Other markets exist (China).
• Accessibility risk: Medium (oil prices may rise
significantly, affecting air fares.

16. Flight Time from Narita
Okinawa
3 hrs
Honolulu
4h Guam
rs
Manila
5 hrs
6 hrs
7 hr
s
Cairns

17. Projected Pricing
Room Type Total Unit Size (sq. Feature Sale Price Maintenance Rental/Week
ft.) (US$) Fee/Year (US$) (US$)
Superior 12 850 2 BR, 2 Bath, 510,000 7,000 1,500
Kitchen
Outright Standard 36 575 1 BR, 1 Bath, 345,000 5,000 1,250
Purchase Kitchen
Basic 12 350 Studio, 1 Bath, 210,000 3,500 1,000
Kitchen
Room Type Total Unit Size (sq. Duration Sale Price Maintenance Rental/Week
ft.) (US$) Fee/Year (US$) (US$)
Superior 24 850 2 weeks/year 60,000 700 1,500
4 weeks/year 90,000 1,400
12 weeks/year 190,000 3,000
Standard 72 575 2 weeks/year 40,000 500 1,250
Timeshare 4 weeks/year 60,000 1,000
12 weeks/year 135,000 2,200
Basic 24 350 2 weeks/year 25,000 350 1,000
4 weeks/year 40,000 750
12 weeks/year 90,000 3,500