The problems in Japan's real estate market have given time-share operator SUNTERRA CORP. an inexpensive way to move into the market. The new Tokyo subsidiary of the former Signature Resorts Inc. bought what was an employee training facility in Katsuyama, Yamanashi prefecture after the previous owner defaulted on the property. It then turned the facility near Lake Kawaguchi into a time-share resort. It paid less than one-fifth what the facility cost to build six years ago. San Mateo, California- based Sunterra plans to spend roughly $74.1 million to acquire as many as 10 other resort-like facilities in popular travel destinations around Japan. Sunterra Resort Kawaguchiko is the company's 84th property. The others are located in Europe and the United States.
An exchange rate of ¥135=$1.00 was used in this report.