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Japanese conglomerate Mitsui & Co Ltd intends to establish a property investment division in Singapore starting this quarter, reported the Business Times.
In particular, the company plans to invest in commercial and industrial properties like data centres and warehouses, said Taku Morimoto, the country head for Singapore and CEO of Mitsui & Co (Asia-Pacific) Pte Ltd.
“In Singapore, it’s a little bit in an oversupply position now, but it’s kind of a cyclical business. [But] in the long term we see growth opportunity.”
This move is anticipated to boost Mitsui’s deals in the domestic market.
Previously, it teamed up with property developer Tokyo Tatemono Co and Singapore’s Ascendas-Singbridge Group to redevelop the former CPF Building in 2016. The two Japanese firms jointly hold a 35 percent stake in the project, while the local firm owns the remainder.
In 2012, it also joined forces with Ascendas to construct the fifth phase of Fusionopolis, with Mitsui holding a 25 percent interest in the partnership.
Morimoto, who relocated to Singapore in April, revealed that aside from the city-state, they will also invest in other ASEAN markets. Moreover, his task is to establishing new growth areas for the conglomerate.
Mitsui, which posted a revenue of 4.364 trillion yen (S$52.78 billion) for the 2017 fiscal year, presently has three main businesses, namely energy and resources, chemicals, along with machinery and infrastructure.
But last April, it announced a three-year plan targeting four growth areas — healthcare, mobility, retail and services, plus nutrition and agriculture — after the company recorded its first consolidated loss in its 70-year history due to the sluggish resources and energy segment.
“We would like to have value-added businesses that are less volatile and have more growth opportunities,” he noted.
In total, Tokyo-based Mitsui has earmarked 1.7 trillion to 1.9 trillion for capital expenditure over the next three years, with about 66 percent of this massive war chest allocated for non-resources businesses.
This article was edited by Keshia Faculin.
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