February 3, 2025 – Fortress Investment Group ("Fortress") today announced that funds managed by its affiliates (“Fortress funds”) have completed the sale of PJC Investments Co., Ltd., which operates as Accordia Golf, to Heiwa Corporation for ¥510 billion (US$3.29 billion) on an enterprise value basis. PJC Investments Co., Ltd. owns 100% of Accordia Next Golf Co., Ltd.
“The sale of Accordia Golf represents the realization of a great investment, and underscores Fortress’s experience in executing operationally intensive business plans on real assets in Japan,” said Eric Golden, Managing Director, Fortress Investment Group Japan. “Over three years, we implemented AI-enabled revenue management for Accordia Golf’s portfolio of courses, improved operating margins, tapped into the growing Korean golf tourism market, and invested in club house facilities to welcome new golfers to the sport. We’re delighted with the results we’ve delivered for Accordia Golf’s members, players, and employees, and for our investors.”
Fortress funds acquired Accordia Golf in January 2022. At the time, the company was already the largest golf course owner and operator in Japan with 169 golf courses and a 13% market share by number of rounds played, and had a very strong in-place cash flow yield. The acquisition represented a continuation of Fortress’s real estate strategy in Japan: increase the value of real assets by utilizing best-in-class management platforms with the goal of driving operating performance.
Under the ownership of Fortress funds, Fortress worked with the company’s management to improve operations and financial performance. Investments included the introduction of centralized and machine learning-enabled revenue management, the launch of dedicated overseas marketing to attract more international golfers, and investments in clubhouses to improve the guest experience. In addition, the course portfolio was optimized through the sale of select sites and addition of four new courses at attractive EBITDA multiples.
These initiatives resulted in the total number of rounds increasing by 300,000 from acquisition to sale, and average play fees increasing by almost 13%. At the completion of the sale, Accordia Golf owned and operated 173 courses.
“Our targeted investments and operational expertise helped deliver significant improvements in Accordia Golf’s performance, with EBITDA increasing faster and to higher levels than our original plan,” added Akio Yamashita, Managing Director, Fortress Investment Group Japan, and Representative in Japan. “The success of this investment program, and the sale of the company to a strategic buyer, underscores that the experience of Fortress’s team in Japan is delivering great outcomes for our financing partners, our investors, and for the customers of the companies under our stewardship.”
The transaction closed on January 31, 2025.
Funds managed by affiliates of Fortress Investment Group continue to have a significant ownership interest in Arcis Golf, the 2nd largest owner and operator of golf courses in the US.
Contact: Mark Lane, mlane@fortress.com, Cell: +1 917.842.4228
About Fortress Investment Group
Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $49 billion of assets under management as of September 31, 2024, on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies. For more information, please visit www.fortress.com.