Industrial Infrastructure & Urban Development Division
Major Business Activities
The foundation of the Industrial Infrastructure & Urban Development Division is our asset management business. We have established this business through many years of experience developing infrastructure, such as industrial parks and condominiums. In addition to these stable earnings foundations, we invest in new infrastructure for which we conduct appropriate risk management and portfolio management. Our business will not be limited to developing and selling lots, but we will also add new facilities and service functions that leverage the Group’s synergy to carry out our mission of improving people’s living standards.
One major project that symbolizes our endeavors to achieve this mission is Deltamas City, a comprehensive urban infrastructure development project in Indonesia. Through Deltamas City, we are working on the issue of how to expand Jakarta’s urban functions. Deltamas City is located on a vast extent of land with an area of 3,200ha—equivalent to nearly 50% of the area encircled by the Yamanote Line in Tokyo—where we are conducting integrated development not only of an industrial park, but also government institutions, educational facilities, commercial spaces, residences, and other facilities.
In recent years, we have taken advantage of the proximity between workplaces and residences to begin a community management program through which we are creating new facilities and services to address social issues and needs unique to the community. Some of these initiatives include inviting hospitals and Japanese schools, as well as our housing projects with Japanese partners within the city. We are also striving to establish this business model by adding shopping malls and other businesses to the project, while investing in new regions such as the Philippines.
For our domestic real estate business, we are expanding the scale and areas of business, while linking and creating cycles for our three functions: 1) development of and investment in housing and other projects, 2) asset management (real estate finance field), and 3) building facility management and lifestyle-related services.
We are also promoting expansion of the value chain using assets, through activities such as development and operation of town houses and rental housing.
Our J-REIT business already manages assets worth ¥250.0 billion, and we aim to increase this number to ¥300.0 billion in the medium- to long-term. When conducting asset replacement, we are able to utilize our engineering function to add value to buildings, thereby strengthening activities that are unique to our business as a general trading company.
Business models supporting value creation
Examples of Activities for Sustained Growths
Overseas Industrial Park Business
Contributing to the growth of the region through comprehensive urban infrastructure development, in addition to expanding the industrial park business
More and more companies are looking to expand into Asia, and a new foundation to grow their business is to entry well-located industrial parks equipped with functions, such as water and electricity supply, and communication networks.
In 1996, Sojitz established the LOTECO Industrial Park, becoming the first Japanese company to build an industrial park in Vietnam. We created a maintenance management system that works around the clock all 365 days, and developed a basic infrastructure capable of providing stable electricity, water supply and waste water processing. We also stationed permanent Japanese staff within the park as part of a full support system in response to the needs of each client. Services include assistance with procedures for establishing local subsidiaries, filing various types of applications, constructing plants, and recruiting employees, as well as supplying raw materials. Based on these integrated business functions, ranging from development of an industrial park to its management and operation, we are currently using our diverse know-how to develop Deltamas City, a comprehensive urban infrastructure development project in Indonesia. Beyond industrial park development, we are also catering to the needs of the locations by building schools for vocational training, shopping centers and houses, and promoting construction of “smart cities”, which will contribute to regional development.
Comprehensive Living Support Business
Daycare management business to help address social issues such as the need for women’s active participation in the workplace and children waitlisted for daycare
In our domestic real estate business, we are expanding out from the general real estate management business, such as managing buildings and condominiums, to a general life solutions business, which will provide high-value-added services to working people and residents. As part of this effort, we considered social needs such as supporting the active participation of women in the workplace, and the problem of children being waitlisted for daycares. Through Sojitz General Property Management Corporation, we moved to acquire full ownership of daycare management company Angelica Co., Ltd., which provides high-level services mainly within the 23 wards of Tokyo. In that sense, while working together with our domestic real estate business, we are advancing the daycare management business in a way that leverages our functions as a general trading company.
We entered the daycare management business in 2016, and the number of children in our daycare centers has already surpassed 1,200, largely in the Tokyo metropolitan area. This number is expected to grow by hundreds in the next three years.
Through this daycare management business, Sojitz will continue to contribute to creating a society which enables guardians to both work and raise children, as well as facilitate the healthy growth of the children who will carry the future of Japan.
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- Industrial Infrastructure & Urban Development Division