Pure Salmon secures £135m funding for 10,000-tonne Japan RAS facility
Pure Salmon Japan, which is developing a 10,000-tonnes-per-year land-based fish farm in Tsu City, Mie Prefecture, today announced the successful closing of an investment of more than US $180 million (£135m) for the project.
The preferred note investment is led by funds managed by affiliates of New York-headquartered global investment firm Fortress Investment Group, with participation from Hong Kong-based alternative credit manager Tor Investment Management, an existing investor in the project.
Preferred stock/notes are hybrid securities combining debt-like fixed income with equity-like ownership, offering higher yields than bonds but lower priority in bankruptcy.
Pure Salmon said the transaction completes the preferred note financing for the project and marks a significant milestone in the continued development of its recirculating aquacuture system (RAS) salmon farming facility in Japan, where construction is well under way.
Capital and experience
“We are very pleased to complete this financing and to partner with Fortress on Pure Salmon Japan,” said Pier Paolo Sfara, chief investment officer at 8F Asset Management, which owns Pure Salmon. “Fortress brings not only strong institutional capital but also deep experience investing across global markets, including Japan.”
Stephane Farouze, founder and chairman of 8F Asset Management and Pure Salmon, said: “Pure Salmon Japan is a key project within our global Pure Salmon platform. We are building a network of large-scale, land-based aquaculture facilities to sustainably produce high-quality salmon close to end consumers. Japan is a strategically important market, and this project reflects our long-term commitment to developing resilient, local food production systems.”
Erol Emed, chief executive of Pure Salmon Japan, said the company was deeply encouraged by the dedication and conviction shown by investors.
“Their commitment underscores the strategic importance of this project and the growing relevance of sustainable domestic seafood production in Japan. We are grateful for that support, and we remain fully focused on executing the project responsibly and successfully,” said Emed.
Equity partners
Pure Salmon said the financing will support the ongoing construction and development of the Pure Salmon Japan facility as it progresses toward operations. Once completed, the facility is expected to be one of the most advanced land-based salmon farms in the world, contributing to a more sustainable and resilient seafood supply chain in Japan. The company also expects to engage with a select group of long-term equity partners as the project continues to advance.
8F/Pure Salmon has plans to produce 260,000 tonnes of salmonids annually in RAS facilities close to major population centres.
Its first phase of construction comprises the facility in Japan; a 10k-tonnes steelhead (rainbow trout) RAS in Tazewell, Virginia, US; a 10k-tonnes salmon farm in Verdun-sur-Mer, France; and a 5k-tonne salmon farm in Brunei Darussalam, with the option to increase capacity to 10,000 tonnes.
8F first announced its plans in 2018, with the Japan facility originally priced at $162m. The RAS was intended be built and fully operational by 2021.
The projects in Japan, the US, and France have all encountered delays for different reasons, including Covid, permitting (France), and infrastructure provision by local authorities (Virginia), but remain ongoing.
8F also plans farms in China and the Middle East.
