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Business trends

Japan's Kajima, Obayashi branching out beyond construction

General contractors plan for life after Olympic-fueled building boom

The Kachidoki The Tower condominium helped lift Kajima's profits to a record high.

TOKYO -- Armed with growing war chests amid a construction boom, Japan's general contractors are expanding their horizons to ensure growth even after building demand slows following the 2020 Olympics here.

Kajima is allocating 20 billion yen ($179 million) for the fiscal year ending in March to turn property development into a full-fledged business arm. It will also consider a tie-up with an outside developer. Property development tends to be more profitable than Kajima's mainstay construction business, and ensures a stable stream of rental income as well.

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