(Construction) - Japanese real estate developers are looking to expanding their earnings through overseas business.
They focus on real estate development in Southeast Asia, where economic growth is remarkable, and are further strengthening business structure at their overseas subsidiaries. They are working to diversify their earnings base by inviting Japanese tenants to their commercial facilities and developing offices with new added value.
Mitsui Fudosan aims to achieve a consolidated operating income of approximately 350 billion yen by 2025. Of this amount, the company plans to earn approximately 100 billion yen, or about 30%, from overseas operations. In January, the company decided to enter the Australian market.
The company's knowledge of real estate development cultivated in Japan has been highly evaluated overseas. Mitsui’s commercial facilities appear to be highly sought after in terms of both maintenance and operation, including the provision of excellent services and the overall attractiveness of the architecture. The company is also playing a role in attracting tenants from Japanese companies, as Japanese brands are particularly popular in Asia.
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| Mitsui’s new research center and office in Boston, the United States |
Mitsubishi Estate has also set a goal of raising overseas business profit to 90 billion yen in its long-term management plan for 2030. An executive of the company analyzes the current situation by saying, "Although there were some difficulties in procuring investment projects in Southeast Asia due to the COVID-19 pandemic, projects are progressing smoothly in the U.S. and Australia, and overall, we are on track with the plan.” Allocating limited management resources and conducting real estate development requires the ability to grasp market trends. To this end, the company will establish local subsidiaries in Indonesia, Vietnam, and Thailand in 2019 and beyond. (2022/04/13)
The Daily Engineering and Construction News of Japan
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