Business Overview and Vision
Aiming to be a function-oriented division that helps raise standards of living by developing the infrastructure for more advanced urban functions and industrial growth
- ▶ Primarily in Japan and other parts of Asia, the division concentrates its resources on businesses which develop and operate social, lifestyle and urban infrastructure, generating synergy among these businesses. Business areas include development and operation of overseas industrial parks and development of condominiums and other housing; asset management businesses including J-REIT management; and lifestyle-related service businesses including nursery management.
- ▶ The division develops and creates function-oriented businesses by understanding consumer needs amid constantly changing social and economic trend.
Strengths That Drive Value Creation
- ▶ A network and customer base in Asia established over many years,
- ▶ Experience and achievements in various industrial sectors in each country, enabling us to not only develop and sell lots in our industrial parks, but to provide solutions to Japanese companies entering Asia,
- ▶ Product development and provision of services tied closely to the market, backed by a long history and track record in housing development and an integrated manufacturing, sales and management system, and
- ▶ Asset and property operation, building maintenance, comprehensive living support and other related services that contribute to increasing the value of assets owned by NIPPON REIT Investment Corporatieon.
Strategies and Initiatives
Sojitz has been developing infrastructure, including industrial parks and condominiums, and various infrastructure management businesses. Having made progress in stabilizing earnings, in addition to achieving sophisticated risk management, we established this division in April 2017 to carry out integrated development, operation and management of infrastructure. Rather than merely developing and selling land and buildings, we consider our division’s role to be adding functions through peripheral facilities and services to create new businesses that help improve standards of living.
One major project is Deltamas City, a comprehensive urban infrastructure development in Indonesia. To deal with the civil issue of how to expand the urban functions of Jakarta, we are simultaneously integrating government, education, commerce, residences and an industrial park, based on a master plan. We have been engaged in development and provision of lots in our industrial parks overseas, development of peripheral infrastructure and support for Japanese companies starting operations in these industrial parks, and have developed the capacity to handle comprehensive urban development projects. The Deltamas City project represents our attempt to work on a larger scale as a general trading company.
On the other hand, the large-scale business conducted by our division is heavily impacted by market fluctuation, making sophisticated risk management and precise portfolio building critical issues for our business. For risk management, we carry out business under a fixed risk ceiling and conduct forward-looking risk management to quickly deal with any risks that arise. For our portfolio, we plan to achieve stable growth in earnings by focusing on a revenue model that balances our development business with businesses centered on peripheral services, such as asset management. Additionally, we will focus on asset diversification to mitigate country risk.
In particular, expanding the peripheral service-related business, such as asset management and comprehensive living support, will continue to be a cornerstone of the division’s growth strategy and a crucial issue directly related to stabilizing earnings. Our new nursery management business is based on this strategy. This business contributes to solving two issues facing Japan – women’s participation and work style reform – and is symbolic of the “two types of value” Sojitz espouses.
I believe that it is crucial to remain creative in achieving the goals of our businesses. We can do so by always keeping time constraints in mind as we engage in business, fine-tuning our professionalism and determining competitive advantages to complete our mission. I would like to work to make our division an organization that draws its strength from creativity in order to vigorously expand our clusters of revenuegenerating businesses.
||Growing opportunities for industrial park development and operation support services as Japanese manufacturers set up new production bases in Asia
||Growing business opportunities associated with an expected surge in demand given the upcoming Tokyo Olympic and Paralympic Games, as well as increased tourist and business traffic to Japan
||Risks associated with revisions to legal and other regulatory systems in Asian countries, and fluctuations in economies and exchange rates