HOME > Business Divisions / Real Estate Development & Forest Products
The division has positioned the condominium and retail property development businesses as its core domains in the real estate sector. In the condominium market, demand volume is expected to be largely flat among post-baby boomers and younger cohorts, typically the main customers for division product models. Nonetheless, sales prices are rising sharply, mainly reflecting increased construction costs due to higher prices for useable land and resources. In retail property development, while the desire for store expansion among property tenants remains as strong as ever thanks to Japan's economic recovery, which is widely expected to continue, changes in consumer lifestyles will likely trigger more diverse needs with respect to shopping centers as well. As we work to anticipate market changes and purchase prime land for business use, we are leveraging Sojitz' strengths in product planning and business development to advance this business.
In the forest products sector, global demand is rising, with a greater push to promote the use of sustainable forest resources to reduce carbon dioxide emissions also likely going forward. Backed by these trends, the division is engaged in an array of businesses in its upstream through downstream value chain. Operations include the import of timber, plywood, and lumber products from around the world as well as offshore trade. The division is also engaged in distribution of plywood, lumber products and building products in Japan, and overseas timber processing, primarily through Sojitz Building Materials Corporation.
In real estate development, the division will continue to position condominiums and retail property development as its core businesses, optimally leveraging Sojitz' functions as a general trading company. At the same time, Sojitz will leverage the information, product planning, and business scheme development capabilities cultivated over the years to accurately grasp changes in the business environment and market needs. We will also aggressively develop a wide range of business real estate properties, including offices and properties related to distribution and other operations.
In the condominium business, we have put in place a framework for conducting everything from product planning to sales and management within the Sojitz Group by inviting Group companies involved in sales and property management to offer input from the planning phases of condominium development. The division has also started marketing IMPREST as a new condominium brand.
In the retail property development business, we are taking steps to integrate planning and development through to store operations within the Sojitz Group. Our strong tenant networks have been especially well-received. Going forward, the division will strive to further boost in-Group functions in each related field. For the retail property development business in particular, we plan to integrate the expertise of Chelsea Japan Co., Ltd., a company involved in outlet mall development, as we expand the division's business domains to encompass "neighborhood shopping centers" and urban commercial facilities.
Where forest products are concerned, the goal is to respond to changes in retail distribution channels through more efficient Group management. Here, we are realigning the division's domestic organization around Sojitz Building Materials Corporation. This effort will also see the division strengthen transactions for lumber products and building materials, and attain more sophisticated functions to encourage direct sales to meet downstream demand. Elsewhere, we are working to obtain official certification under Japan's Law on Promoting Green Purchasing and enhancing initiatives for creating a more environmentally friendly business.
The forest products business boasts one of the largest handling volumes in the industry for lumber imports to Japan, a feat made possible through strong relationships forged over the years with prominent suppliers abroad. In this business, we are promoting an overseas strategy underpinned by this network of key production centers overseas that illustrates two division strengths: purchasing power built on economies of scale, and efficient logistics operations. Management resources will be channeled into natural resource-rich China and Russia as we bolster our manufacturing functions overseas by taking a proactive approach to putting Japan's sophisticated and cost-competitive timber processing technology to use outside Japan.
