Sojitz Corporation

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Industrial Infrastructure & Urban Development Division

Operates foundational businesses both in Japan and overseas that serve as pillars for industry and urban life, including overseas industrial parks, overseas urban infrastructure, domestic real estate, J-REIT management, and comprehensive living support.

Strengths of Division

External Environment

Opportunities

  • Accelerating relocation and expansion of manufacturing bases to Asian countries due to revisions in global supply chains
  • Demand in Japanese society for women‘s participation in the workforce and solutions to the daycare availability problem; demand for talent development and new job/industry creation in Asian countries

Risks

  • Shrinkage of market associated with population decline in Japan
  • Risks associated with revisions to laws and other regulatory systems in Asian countries; risk of fluctuations in business conditions, exchange rates, and interest rates
  • The effects of the decelerating growth of the global economy on Asian economies
  • The effects of future changes in work and lifestyle habits on the real estate industry

Growth Strategy

We will contribute to society by enhancing the value chain covering all stages from asset development and ownership to sales, asset management, operation and related services and optimizing the performance of each function.

Yu Mizuike

COO
Industrial Infrastructure & Urban Development Department

The Industrial Infrastructure & Urban Development Division will take advantage of the experience, networks and know-how it has acquired through many years spent developing industrial parks, housing, and other urban infrastructure businesses in order to build a value chain that covers the full range from asset development and ownership to asset sales, management, operation and related services. We will optimize all of their functions so they perform at peak levels and thereby create a well-balanced earnings foundation. Going forward, we will continue to respond to the changes and needs of the times and contribute to the development of society.

In Japan, we aim to expand our J-REIT management business and the ownership and development of profit-earning real estate while focusing on value chains of asset management, warehousing and bridge funding, and property management. We also intend to strengthen our initiatives when it comes to developing new assets and life solution-related businesses in response to changes in the times such as work style revolutions and SDGs.

Overseas, to help manufacturing companies expand abroad, we will continue to concentrate on developing new industrial parks with a focus on Asia. At the same time, in order to create more diverse sources of earnings, we will enhance the various kinds of services that we offer to corporations which have moved overseas, such as logistics, IT support and the stable supply of core infrastructure such as electricity, water and sewage at existing industrial parks. Additionally, in Asia with its growing middle class in particular, we are concentrating on smart cities and other urban development businesses that will help us secure base earnings in the future.

Businesses

  Domestic real estate businesses

Daycare management business  

■Domestic real estate businesses

We intend to expand all of our businesses by enhancing the value chain covering all stages from asset development and ownership to sales, asset management, operation and related services and optimizing the performance of each function.

■Overseas industrial park businesses

Primarily in the emerging countries of Asia, which are competitive sites for production and attractive locations for consumer sales, we use our knowledge about industrial park development, sales, and management businesses to develop and manage the industrial parks, thus allowing manufacturing companies to concentrate on running their own businesses. This helps to create a foundation for development not only for the manufacturing industry but for the region as well.

■J-REIT management business

We are increasing the total amount of assets under the management of Nippon REIT Investment Corporation (NRT), our integrated, listed REIT, and improving the quality of its portfolio to expand our stable earnings foundation. Through Sojitz REIT Advisors K.K., which is responsible for management of the assets, we are carefully identifying properties and increasing their value via our proprietary engineering technology. As of March 31, 2020, six years after NRT was listed, the company’s assets under management totaled around ¥250.0 billion, and we are aiming for ¥300.0 billion in the medium term.

■Overseas urban infrastructure business

In response to the issue of urban configuration, which accompanies the economic growth of emerging countries in particular, we partner with the most suitable companies in order to carry out development projects that contribute to the growth of the countries and the region. In Deltamas City in Indonesia, we are driving the creation of a city for 250,000 people, making use of the strengths of Japanese companies to equip the city with schools for Japanese people overseas, large shopping malls, and housing.

Organization

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