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Business

Sumitomo spending big on property development

Japanese trading house has 200bn yen for its domestic and other Asian markets

This rendering shows a condominium complex that Sumitomo Corp. plans to develop in India.

TOKYO -- Japanese trading house Sumitomo Corp. plans to spend a total of 200 billion yen ($1.76 billion) developing real estate in Japan and abroad by the fiscal year through March 2020. The projects will include mid-range buildings, those of eight to 12 stories, in Tokyo as well as apartment buildings and logistics facilities.

Sumitomo expects the properties in Japan, especially in central Tokyo, to bring in stable revenue streams. It also wants to chase opportunities in other parts of Asia where the number of middle-income earners is growing fast.

Sumitomo halted the development of mid-range buildings amid the global financial crises that began in 2008. It now expects to complete a new building in Minato Ward, central Tokyo, next month. It will complete five other mid-range buildings in central Tokyo by the end of 2018. Sumitomo is putting a combined 25 billion yen into these projects.

It also plans to establish three logistics facilities worth a total 50 billion yen in Greater Tokyo and western Japan during the next two years. Once these are completed, Sumitomo will have seven logistics locations.

In India, the trading house plans to jointly develop a 430-unit residential complex. It is also seeking to expand into Indonesia.

(Nikkei)

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